Rubber Futures Rally on Weaker Yen Amid Softening Demand from China

Japanese rubber futures continued their upward trend on Friday, reaching their biggest weekly gain since April. The Osaka Exchange's rubber contract for March delivery rose by 0.2% to 452.1 yen per kilogram (USD2.86), marking a 4.67% increase over the week.

The weaker Japanese yen has made yen-denominated assets more attractive to overseas buyers, counteracting concerns over softer demand from China ahead of its Mid-Autumn Festival holiday period. The Shanghai Futures Exchange is closed this weekend and will resume on September 28.

Despite the positive momentum, analysts from broker Everbright Futures caution that downstream tyre demand is falling short of expectations due to production activity weakening and purchasing limited to immediate needs as the long holiday in China approaches.