Japanese rubber futures jumped to a five-week high on Thursday as hopes for a partial deal on US coronavirus stimulus helped boost risk appetite while a weaker yen also lent support.
Osaka Exchange's (OSE) rubber contract for March delivery finished 3.3 yen, or 1.8%, higher at 191.4 yen ($1.81) per kg. It rose to as high as 192.3 yen earlier in the session, marking the highest level since Sept. 3.
The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 141.0 US cents per kg, up 1.1%.
Chinese financial markets, including commodity futures, are closed from Oct. 1 to Oct. 8 for the Golden Week holiday, which includes the Mid-Autumn Festival and the National Day. Markets will resume trade on Oct. 9.
After shutting down talks over a larger stimulus deal, US President Donald Trump wrote on Twitter Congress should pass money for airlines, small businesses and stimulus cheques for individuals, fuelling hopes for some relief.
A softer yen also provided support to rubber prices as it makes yen-denominated assets more affordable when purchased in other currencies. The US dollar was quoted around 106.01 yen, compared with 105.73 yen the previous day.
