TOKYO (Feb 10): Benchmark Tokyo rubber futures rose on Friday due to firmer Shanghai futures, and amid higher Tokyo stock market helped by U.S. President Donald Trump’s pledge for a major tax announcement, leading to a weekly gain of over three percent.
“Tokyo rubber market has been just tracking Shanghai market and today was no exception,” said a Tokyo-based dealer, who declined to be named.
The Tokyo Commodity Exchange rubber contract for July delivery ended higher by 4.0 yen or 1.3% at 311.7 yen (US$2.74) per kg.
For the week, it gained 3.6%.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 275 yuan to finish at 20,970 yuan (US$3,047.48) per tonne.
“Solid gains in the Nikkei index after Wall Street’s climb and a yen’s drop also lent support,” the dealer added.
Japan’s Nikkei share average soared on Friday to a two-week high, following Wall Street’s lead, after Trump said he would announce the most ambitious tax reform plan since the Reagan era in the next few weeks.
The dollar was buoyant on Friday, rising to a 1-1/2-week high versus the yen, on Trump’s tax vow. A weaker yen makes yen-denominated assets more affordable, when purchased in other currencies.
“Whether rubber prices will continue a bull trend next week will depend on Shanghai’s move, but at least the TOCOM’s near-term contracts may try to test recent highs because of low inventories,” the dealer said.
The front-month rubber contract on Singapore’s SICOM exchange for March delivery last traded at 220.8 U.S. cents per kg, up 1.9 cent.
(US$1 = 6.8811 Chinese yuan)
(US$1 = 113.7100 yen)
