By Emily Ou Yong
Japanese rubber futures rose on Tuesday, as the Japanese yen weakened to a fresh 40-year low, while data showing China's growing factory activity in June lifted sentiment in the world's largest tyre maker.
The Osaka Exchange (OSE) rubber contract for December delivery TOCOM:TRB1!, TOCOM:TRB1! was up 3.9 yen, or 0.95%, at 414.3 yen ($2.56) per kg as of 0215 GMT.
The contract has lost 1.85% so far this month, and eyed its first monthly decline since January.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SHFE:RU1! rose 180 yuan, or 1.09%, to 16,705 yuan ($2,458.97) per metric ton.
The most active September butadiene rubber contract on the SHFE (SHBRv1) advanced 250 yuan, or 2.12%, to 120,25 yuan per metric ton.
The yen FX_IDC:USDJPY weakened to 162.27 per dollar in early trading, a 40-year low, with focus turning to Tokyo's next steps.
A weaker currency makes yen-denominated assets more affordable to overseas buyers.
China's factory activity returned to expansion in June, an official survey showed on Tuesday, driven by strong exports of high-tech manufacturing linked to the AI boom, even as shipments of other goods remained weak amid subdued domestic demand.
As the world's top consumer of rubber through its tire and automotive sectors, China's stabilising industrial activity offers some support to rubber demand expectations, even though the recovery remains uneven.
The front-month rubber contract on Singapore Exchange's SICOM platform for July delivery SGX:TF1! last traded at 213.2 U.S. cents per kg, up 0.6%.
($1 = 162.1400 yen)
($1 = 6.7935 yuan)