TOKYO (Jan 4): Benchmark Tokyo rubber futures closed 3.6% higher on Wednesday in the first trading session of this year, as a weaker yen and strength in Japanese equities helped improve market sentiment.
Earlier in the session, Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, hit negative territory after benchmark Shanghai futures slumped.
“A weaker yen and firm Japanese equities helped boost TOCOM, in contrast to weak Shanghai futures,” said a Tokyo-based broker.
The Nikkei average ended up 2.5% after the dollar moved back towards a 14-year peak as US debt yields resumed climbing.
The Tokyo Commodity Exchange rubber contract for June delivery finished 9.5 yen higher at 273.4 yen (US$2.32) per kg, after hitting its highest since Dec 22 at 273.7 yen earlier. It also hit an intraday low of 260.8 yen.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 105 yuan to finish at 18,530 yuan (US$2,665) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for February delivery last traded at 202.50 US cents per kg, up 1.4 US cents.
(US$1 = 6.9540 Chinese yuan)
(US$1 = 117.9900 yen)
