TOKYO, June 13 (Reuters) – Benchmark Tokyo rubber futures bounced back on Monday, snapping a four-session losing streak and recovering from a four-month low hit on Friday, as investors looked for bargains and on the back of firmer Shanghai futures, dealers said. The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery JRUc6 0#2JRU: finished 5.2 yen, or 3.5 percent, higher at 153.2 yen ($1.45) per kg. The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, fell for the seventh week in a row last week, marking their longest losing streak in more than two years.
“The market was supported by higher Shanghai market, while short-covering also lent support,” said Toshitaka Tazawa, an analyst with Fujitomi Co, adding that there was little reaction to a plunge in Tokyo equities and the higher yen. The most-active rubber contract on the Shanghai futures exchange for September delivery SNRcv1 rose 85 yuan to finish at 10,535 yuan ($1,600.24) per tonne.Chinese markets were closed on Thursday and Friday for the Dragon Boat festival holiday.
Japanese stocks stumbled to a five-week low on Monday, marking a third straight session of losses, as Brexit woes sapped risk appetite and hit equities globally. .T The yen gained broadly, hitting a one-month high against the dollar and a three-year high against the euro, on those Brexit concerns and worries over political fallout after Sunday’s mass shooting in the United States. FRX/ “The rubber prices might have hit a floor.
But if the market could not keep an upward momentum, the benchmark will try last Friday’s low of 147.5 yen and February’s low of 144.5 yen,” Tazawa said. The front-month rubber contract on Singapore’s SICOM exchange for July delivery STFc1 last traded at 125.2 U.S. cents per kg, up 1.4 cent.
($1 = 105.9900 yen)
($1 = 6.5834 Chinese yuan)
(Reporting by Yuka Obayashi; Editing by Subhranshu Sahu)
