RUBBER-Japanese futures rise on trade hopes, but supply outlook caps gains

SINGAPORE, April 23 (Reuters) -

• Japanese rubber futures edged higher on Wednesday, supported by expectations of a de-escalation in trade tensions between the U.S. and top consumer China, though gains were limited by a firmer supply outlook.

• The Osaka Exchange (OSE) rubber contract for September delivery JRUc6, 0#2JRU: was up 1.9 yen, or 0.67%, at 287.2 yen ($2.03) per kg, as of 0209 GMT.

• The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery SNRv1 eased 65 yuan, or 0.44%, to 14,550 yuan ($1,990.89) per metric ton.

• The most active May butadiene rubber contract on the SHFE SHBRv1 nudged down 15 yuan, or 0.14%, to 10,955 yuan ($1,498.98) per metric ton.

• U.S. Treasury Secretary Scott Bessent said on Tuesday that he believes that U.S.-China trade tensions will ease, though negotiations have not started yet.

• U.S. President Donald Trump expressed optimism that he would make progress with China that would substantially lower their tariffs.

• Still, China is facing stronger deflationary pressures as a result of tariff impact, though fiscal support is helping to offset the growth drag that the duties are causing, International Monetary Fund chief economist Pierre-Olivier Gourinchas said on Tuesday.

• The dollar rose 0.75% to 142.68 yen JPY=EBS on Wednesday. USD/

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

• Still, domestic production areas in Yunnan are about to enter their peak season, while overseas plantations are expected to start harvesting soon, said Chinese financial information site Tonghuashun Information.

• Rubber crops usually undergo a season of low production from February to May, before a peak harvesting period that lasts until September.

• The front-month rubber contract on Singapore Exchange's SICOM platform for May delivery STFc1 last traded at 167.7 U.S. cents per kg, up 0.5%.

($1 = 141.7800 yen)

($1 = 7.3083 Chinese yuan)