* Japanese rubber futures edged higher on Wednesday, as
investors
looked for bargains after the previous session's losses, though
a stronger yen against the U.S. dollar and fears over a global
economic slowdown capped the gains.
* The Osaka Exchange rubber contract for July delivery was up 0.2 yen, or 0.1%, at 226.7 yen ($1.7) per kg,
as of 0255 GMT. It slid 0.8% on Tuesday.
* Stronger oil prices also lent support. Oil prices
rose
on Wednesday, extending gains from the previous two days, on the
weaker dollar and as U.S. crude stocks surprisingly fell.
* The natural rubber market benefits from stronger oil
prices that
spur manufacturers to shift away from synthetic rubber, which is
derived from oil, thus driving up prices of natural rubber.
* The dollar fell to around 131.25 yen from around
132.26
yen on Tuesday afternoon in Asia, after Federal Reserve Chair
Jerome Powell failed to offer fresh signs of a hawkish pushback
against the resilient labour market, leading investors to bet
that interest rates may not rise much further.
* A stronger yen reduces the value of yen-based rubber in a
dollar
base and normally encourages investors to sell rubber futures at
OSE.
* The rubber contract on the Shanghai futures exchange for
May
delivery was down 5 yuan at 12,670 yuan ($1,869) per
tonne.
* The front-month rubber contract on Singapore Exchange's
SICOM
platform for March delivery last traded at 139.6 U.S.
cents per kg, down 0.1%.
($1 = 131.2900 yen)
($1 = 6.7783 Chinese yuan)
(Reporting by Yuka Obayashi; Editing by Subhranshu Sahu)
