TOKYO (Dec 1): Benchmark Tokyo rubber futures rose on Tuesday, backed by firmer Shanghai stock market and rubber futures, helping offset weak manufacturing data in top buyer China, dealers said.
The Tokyo Commodity Exchange rubber contract for May delivery <0#2JRU:> finished 2.0 yen, or 1.2%, higher at 164.1 yen (US$1.34) per kg.
Manufacturing activity in China hit a three-year low in November, an industry survey showed, supporting the case for more accommodative policies as authorities seek to prop up growth in the world’s second largest economy.
“But TOCOM did not react to the data much. Instead, the prices were lifted in late trade after Shanghai stock market climbed and as Shanghai rubber futures rose,” said Toshitaka Tazawa, an analyst with Fujitomi Co.
China stocks posted modest gains, as persistent signs of weakness in the economy and liquidity concerns reined in any feel-good mood generated by the International Monetary Fund‘s decision to grant the yuan reserve currency status.
The most-active rubber contract on the Shanghai Futures Exchange for May delivery rose 255 yuan to finish at 10,155 yuan (US$1,587.09) per tonne.
“Higher commodity prices also helped improve the market sentiment,” Tazawa said.
Crude oil prices rose as the dollar eased slightly, but concerns about oversupply remained front of mind with OPEC expected to keep its output target unchanged at a policy meeting on Friday.
Copper prices also firmed but the metal’s downtrend was expected to resume after China’s factories slowed in November, underlining the headwinds facing demand.
The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 116.3 US cents per kg, up 1.6 US cent.
(US$1 = 6.3985 Chinese yuan)
