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Tokyo futures rose to 2-week high on weaker yen

TOKYO, Nov 15 (Reuters) – The benchmark Tokyo rubber futures contract rose 1.2 percent to a two-week high on Friday, marking its biggest weekly gain in a month, on a weaker yen and a rise in Nikkei share prices, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for April delivery rose 3.0 yen to settle at 262.1 yen ($2.62) per kg.

It was the highest closing level since Oct. 30 and 3.4 percent above a three-month intra-day low of 253.5 yen hit on Nov. 5.

“The market was buoyed by lower yen, higher share prices and gains in crude oil prices,” Toshitaka Tazawa, an analyst at Fujitomi Co, said.

The yen slid to a two-month low against the dollar on Friday, and the trend is likely to have further to go as the options market shows some investors betting on dollar strength in the weeks ahead.

A slide in the yen spurred Tokyo’s Nikkei share average 2 percent higher on Friday to above 15,000 for the first time in six months, helping the benchmark post its best weekly rise in four years.

Brent oil held above $108 a barrel on Friday, heading for its biggest weekly gain since early July on expectations the Federal Reserve will stick with its easy money policy for now.

“But considering the bullish sentiment in other markets, the rubber did not climb as much as we had expected. It seems higher inventories in China and Japan is putting cap on the market,” he said, adding that trading was also lacklustre.

“If there is any fresh sign of strength in the Chinese economy, the rubber prices may move higher next week,” he said.

The most-active rubber contract on the Shanghai futures exchange for May delivery fell 180 yuan to 19,150 yuan ($3,100) per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 230.00 U.S. cents per kg, down 1.00 cent.

($1 = 99.9350 Japanese yen) ($1 = 6.0922 Chinese yuan) (Reporting by Yuka Obayashi; Editing by Anand Basu)

Source: Reuters

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