Japanese rubber futures rose on Monday, buoyed by China granting exemptions to export curbs on Nexperia chips for civilian use, while a weaker yen made the commodity cheaper for other currency holders.
The Osaka Exchange (OSE) rubber contract for April delivery TRB1!,
TRB1! was up 0.96% at 316 yen ($2.10) per kg, as of 0159 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery RSS31! dipped 0.1% to 15,010 yuan($2,107.26) per metric ton.
The most-active December butadiene rubber contract on the SHFE (SHBRv1) fell 0.73% to 10,160 yuan per ton.
China has granted exceptions to export controls on Nexperia chips for civilian applications, the commerce ministry said on Sunday. Nexperia manufactures chips used in auto manufacturing.
Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres.
The dollar was up 0.3% against the yen USDJPY at 153.82, following comments from Japanese Prime Minister Sanae Takaichi that the government would ditch the current annual fiscal target in favour of one that measures spending through several years.
A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.
Oil prices rose on optimism that the U.S. government shutdown could end soon and lift demand in the world’s top oil consumer.
Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
Buying interest remained limited last week on weak China economic data, while prices are expected to stay weak and trading volumes subdued in the coming weeks, Japan Exchange Group said in a report on Monday.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery TF1! last traded at 169.4 U.S. cents per kg, up 0.2%.