Thursday, 16 July 2015 14:52
TOKYO: Benchmark Tokyo rubber futures ended up 3.4 percent on Thursday and touched a 10-day high, helped by a recovery in Shanghai stock markets.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, had recently been weighed down by concerns about Chinese economic growth, which had pushed down the benchmark contract to a 2-1/2-month low a week ago.
The Tokyo Commodity Exchange rubber contract for December delivery finished 7.1 yen higher at 215.9 yen per kg, the highest close since July 3. It also rose as high as 217.5 yen, the highest since July 6.
“The circuit breaker for TOCOM was triggered repeatedly as Shanghai stocks were firm,” said a Tokyo-based dealer.
China stocks rebounded on Thursday from the previous session’s sharp correction, but high trading volatility reflects lingering investor caution even as Beijing’s flurry of rescue measures has managed to stem panic selling.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 105 yuan to finish at 13,335 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 145.7 U.S. cents per kg, up 1.1 cent.
