By Emily Ou Yong
Japanese rubber futures rose on Wednesday, supported by higher oil prices amid renewed tensions in the Middle East and expectations of robust tyre demand in top importer China.
The Osaka Exchange (OSE) rubber contract for December delivery TOCOM:TRB1!, TOCOM:TRB1! was up 0.5 yen, or 0.12%, at 415.1 yen ($2.55) per kg as of 0227 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SHFE:RU1! rose 15 yuan, or 0.09%, to 16,670 yuan ($2,455.04) per metric ton.
The most active September butadiene rubber contract on the SHFE (SHBRv1) fell 20 yuan, or 0.17%, to 11,940 yuan per metric ton.
Oil prices rose in early trade on Wednesday as investors responded to news that Iran will not be meeting with U.S. envoys, a further strain on the interim ceasefire agreed between the two in the four-month-long war.
Natural rubber often tracks oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
China's manufacturing sector expanded for a seventh straight month in June, completing its strongest quarter since late 2020 as output and new orders continued to rise, a business survey showed on Wednesday.
Demand from China remains a key market driver, with Chinese buyers purchasing rubber to produce tyres for export as the global economy gradually improves, said a Singapore-based rubber trader.
The front-month rubber contract on Singapore Exchange's SICOM platform for July delivery SGX:TF1! last traded at 209 U.S. cents per kg, down 0.6%.
($1 = 162.6500 yen)
($1 = 6.7901 yuan)