TOKYO (May 21): Benchmark Tokyo rubber futures ended 3.1% higher on Monday, getting support from a jump in Shanghai counterparts after China agreed to significantly increase its purchases of US goods and services, easing trade tensions.
Beijing and Washington agreed they would keep talking about measures under which China would import more energy and agricultural commodities from the United States to close the US$335 billion annual US goods and services trade deficit with China.
The dollar hit a fresh four-month high on Monday after the announcement, boosting risk appetite.
“TOCOM got support from eased tensions between China and the United States and a strong dollar against the yen,” a Japanese trading source said.
The Tokyo Commodity Exchange rubber contract for October delivery finished 6.1 yen higher at 200 yen (US$1.80) per kg after hitting 200.6 yen earlier, the highest since Jan. 29.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 530 yuan to finish at 12,230 yuan (US$1,913) per tonne after jumping more than 5% earlier.
The front-month rubber contract on Singapore’s SICOM exchange for June delivery last traded at 147.50 US cents per kg, up 4.6 cents.
(US$1 = 111.3600 yen)
(US$1 = 6.3915 Chinese yuan)