Japan futures tick up as supply concerns outweigh soft demand prospects

• Japanese rubber futures edged higher on Tuesday as global supply uncertainty overshadowed a weaker seasonal demand outlook, while a softer yen also lent support to prices.

• The Osaka Exchange (OSE) rubber contract for May delivery TRB1!, TRB1! was up 3.5 yen, or 0.96%, at 367.5 yen ($2.34) per kg, as of 0210 GMT.

• The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery RSS31! rose 70 yuan, or 0.4%, to 17,550 yuan ($2,404.57) per metric ton.

• Rubber tapping has stopped in the producing regions of Yunnan and Hainan in China, and is affected by rainfall in Indonesia and Malaysia, Chinese financial information site Hexun Futures said in a note.

• In top rubber producer Thailand, the monsoon prevailing over the gulf and southern region will strengthen, while the high-pressure system covering the upper parts of the country will weaken, the meteorological agency said on its website.

• Demand in the traditional off-peak season remains relatively weak, said Hexun.

• The yen USDJPY was pinned near a five-month low and last stood at 157.19 per dollar, having already fallen 4.7% this month into territory that is keeping traders on alert to any intervention from Japanese authorities.

• A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers.

• Japan's Nikkei NI225 fell 0.37%.

• Toyota Motor 7203 has decided to build a new factory to produce electric vehicles in China, the Nikkei business daily reported on Monday.

• Automobile manufacturing can influence the rubber market as it involves using rubber-made tyres.

• The front-month rubber contract on Singapore Exchange's SICOM platform for January delivery TF1! last traded at 187.5 U.S. cents per kg, up 0.4%.

($1 = 157.1000 yen)

($1 = 7.2986 yuan)