TOKYO (Apr 16): Benchmark Tokyo rubber futures rose for a second day on Thursday, touching a key 200 yen level, helped by a recovery in oil prices and higher Shanghai futures amid expectations for further government stimulus in top buyer China.
The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery <0#2JRU:> finished 1.2 yen higher, or 0.6 percent, at 200.0 yen ($2) per kg, the highest close in a week.
“Stronger oil prices and Shanghai rubber market continued to help TOCOM prices,” said Satoru Yoshida, commodity analyst at Rakuten Securities.
Brent crude hit 2015 highs of above $63 per barrel on Thursday after a rally of more than 5 percent in the previous session, and analysts said more price rises were likely despite market oversupply.
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The most-active rubber contract on the Shanghai futures exchange for September delivery rose 50 yuan to finish at 12,760 yuan ($2,060) per tonne.
Investors’ expectations that weak Chinese growth numbers may spark government stimulus measures lent support, dealers said.
“As the TOCOM benchmark managed to pass a 200 yen barrier, it is now expected to head for 210 yen,” Yoshida said.
The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 138.5 U.S. cents per kg, up 0.3 cent. ($1 = 119.3600 yen) ($1 = 6.1932 Chinese yuan renminbi)
