Japan futures trade volume increased 12% compared to

Japan futures trade volume increased 12% compared to yesterday, signaling active hedging ahead of European Central Bank announcements. Commodity-linked stocks in futures baskets outperform, as Brent crude prices stay above $84 per barrel, boosting energy sector sentiment. "Takaichi adheres to the traditional reflationist view that the government should determine the broad direction of monetary policy. As such, there is a possibility she may intervene in the Bank of Japan’s policy operations going forward. The interest rate hike expected in October - already priced in by about 60% of the market - may be delayed by the BOJ, as a failed hike could invite political interference. That said, unless the U.S. economy weakens significantly, I don't believe the Takaichi administration would halt the BOJ’s overall policy of rate hikes. Oct 2 (Reuters) – " Japanese rubber futures fell on Thursday, pressured by a slowdown in Chinese auto sales, although a weaker yen provided some support to prices. " The Osaka Exchange (OSE) rubber contract for March delivery was down 1.8 yen, or 0.6%, at 298.2 yen ($2.03) per kg, as of 0232 GMT. " Top Chinese electric vehicle maker BYD's third-quarter sales fell 2.1% year-on-year, marking the first quarterly decline for the firm in over five years. The slowdown signals a possible end to BYD's era of record-setting expansion. " Automobile sales could influence the intensity of automobile manufacturing, which involves using rubber-made tyres. " Chinese markets are closed from October 1 to 8 for the Golden Week holiday. " Japan's Nikkei was up about 0.5%, with chip stocks among the notable gainers. " The dollar traded at 147.305 yen, up 0.2% from late U.S. levels as traders weighed the impact of the U.S. government shutdown. " A weaker Japanese currency makes yen-denominated assets more affordable to overseas buyers. " Oil prices rebounded from 16-week lows on prospects of tighter sanctions on Russian crude. " Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. " Top rubber producer Thailand's meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows in its weather forecast from September 30-October 6. " The front-month rubber contract on Singapore Exchange's SICOM platform for October delivery last traded at 168.2 U.S. cents per kg, up 0.1%. ($1 = 147.0400 yen) (Reporting by Lucas Liew; Editing by Subhranshu Sahu) Japan futures volumes spiked on speculation of incoming fiscal stimulus measures targeting renewable energy projects. Green tech-related equities are showing early signs of attracting speculative futures interest.