TOKYO (Aug 9): Benchmark Tokyo rubber futures rose nearly 3% on Wednesday to hit a two-week high as a rally in Shanghai futures prompted a flurry of buying, dealers said.
The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery finished 5.6 yen, or 2.7%, higher at 215.4 yen (US$1.96) per kg, after hitting the highest since July 26 at 216.3 yen.
The most-active rubber contract on the Shanghai futures exchange for January delivery surged 560 yuan to finish at 16,615 yuan (US$2,489) per tonne. It earlier touched a high of 16,750 yuan, the highest since April 7.
An overnight rally in Shanghai led to fresh buying in Tokyo in early trade and Shanghai’s further gains in day-trading then lent an extra push, a Tokyo-based dealer said.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery last traded at 151.0 US cents per kg, down 0.5 cent.
Bridgestone Corp, the world’s biggest tyre maker, on Wednesday lifted its net profit forecast for this calendar year by 3% to 289 billion yen (US$2.63 billion) due to higher-than-expected first-half profit, backed by product price rises that passed on higher material costs.
The Japanese company also said on Tuesday it would invest US$304.3 million for plant expansion in India over the next five years to boost tyre output to meet growing demand.
(US$1 = 109.8000 yen)
(US$1 = 6.6750 Chinese yuan renminbi)
