TOKYO—Natural rubber futures saw a trend reversal in the trading week ended May 17, as Far East markets reported substantial gains in active trading.
All major exchanges reported "strong speculative and consumer buying, with increased trading volumes," Japan Exchange Group (JPX) reported May 20.
In Osaka, Japan, OSE rubber futures rose by 5.1 percent week-on-week, while Chinese exchanges SHFE and INE saw gains of 3.8 percent and 4.0 percent, respectively.
In Singapore, SICOM rubber futures closed 4.2 percent higher as speculators added long new positions.
The "firmer sentiment," said JPX, was supported by stronger global equity markets, driven by the prospect of lower interest rates in the U.S., and optimism about China's economic recovery.
In April, China's total vehicle sales eased slightly month-on-month, settling at 2.36 million units, but remained 10 percent above the prior-year level.
The country is also issuing long-term 20- to 50-year government bonds worth about $138 billion (Yuan 1,000 billion) to stimulate its sluggish economy.
Uncertainties remain, however, not least due to U.S. plans to raise tariffs on a broad range of imports from China, including EVs, batteries, latex gloves and medical devices.