Tuesday, 17 November 2015 18:10
TOKYO: Benchmark Tokyo rubber futures edged up on Tuesday as gains in Japanese equities and a weaker yen wiped away risk-averse sentiment from the attacks in Paris, though nagging concerns over softer demand in top buyer China capped further rise.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished 1.4 yen higher at 157.5 yen ($ 1.28) per kg, after hitting a one-week low of 155.3 yen earlier.
“Rising Nikkei index and yen’s weakness lent support to the market,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
Global shares gained convincingly on Tuesday, clawing back all the ground lost the previous day as investors bet that Friday’s attacks on Paris would have little lasting impact on the economy.
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Japan’s benchmark Nikkei stock average also rebounded, briefly hitting a three-month high.
The dollar added about 0.1 percent to 123.27 yen, away from the previous session’s one-week low of 122.23, as investor risk aversion faded. The yen is traditionally a safe-haven currency, and it had gained after the Paris attacks.
“Still, sells gathered momentum at around 160 yen. Unless the benchmark breaks through that ceiling, the market’s overall sentiment may stay bearish,” Yoshida said.
The most-active rubber contract on the Shanghai Futures Exchange for January delivery plunged 150 yuan to finish at 10,520 yuan ($ 1,608.10) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 117.3 U.S. cents per kg, unchanged from the previous day.
