RUBBER-Japanese futures rise as oil prices jump amid poor global outlook

Kitco Media
By Reuters
Published:
Updated:
Reuters
SINGAPORE, April 3 (Reuters) -


* Japanese rubber futures climbed on Monday, lifted by soaring crude oil prices, but the market remained tense amid uncertainty over possible Federal Reserve rate rises and a slowing global economy.
* The Osaka Exchange (OSE) rubber contract for September delivery was up 3.3 yen, or 1.6%, at 213.3 yen ($1.60) per kg as of 0209 GMT.
* The rubber contract on the Shanghai futures exchange (SHFE) for May delivery was up 35 yuan, or 0.3%, at 12,045 yuan ($1,748.95) per tonne.
* Japan's benchmark Nikkei average opened up 0.58%.
* Japan's business sentiment soured in January-March to hit the worst level in more than two years, a closely-watched central bank survey showed on Monday, as slowing global growth clouds the outlook for the export-reliant economy.
* Likewise, China's factory activity growth stalled in March, weighed by slowing production and weaker global demand and adding to uncertainty about a post-COVID recovery, a private sector survey showed on Monday.
* Federal Reserve policymakers may take some comfort from data on Friday showing a key gauge of inflation cooling in February, but it's far from clear if it marks enough headway for U.S. central bankers to end their year-long campaign to hike interest rates.
* Still, oil prices jumped about $5 a barrel on Monday's open, jolted by a surprise announcement by OPEC+ to cut production further in an effort to support market stability.
* The natural rubber market is helped by stronger oil prices as manufacturers are incentivised to shift away from synthetic rubber that is derived from oil, driving natural rubber prices higher.
* Oil prices surged on Monday after Saudi Arabia and other OPEC+ oil producers announced a surprise round of output cuts, a potentially ominous sign for global inflation just days after a slowdown in U.S. price data had boosted market optimism.
* The front-month rubber contract on Singapore Exchange's SICOM platform for April delivery last traded at 136.1 U.S. cents per kg, up 0.3%.
($1 = 133.0500 yen) ($1 = 6.8870 yuan) (Reporting by Carman Chew; editing by Uttaresh Venkateshwaran)

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