TOKYO (Nov 22): Benchmark Tokyo rubber futures climbed for a second day on Wednesday, backed by stronger Shanghai futures and as investors looked for bargains after an extended decline to a 5-month low that was hit the previous day.
Investors unwound short positions ahead of a national holiday on Thursday in Japan and supported by a rally in Tokyo stock market, dealers said.
Japan’s Nikkei share average rose to a near two-week high on Wednesday, buoyed by gains in large-cap stocks, and financial companies as global growth hopes lifted the mood across world markets.
Asian shares joined a global rally to reach their highest in a decade on Wednesday as strong world growth and rising corporate profits lured hordes of investors into equities, while oil prices jumped closer to a recent 2½-year top.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished 1.3 yen higher at 191.3 yen (US$1.7) per kg. Early on Tuesday, it touched its lowest since June 23 at 187.8 yen.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 170 yuan to finish at 13,390 yuan (US$2,025) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 140.5 US cents per kg, up 1.4 cent.
(US$1 = 112.0200 yen)
(US$1 = 6.6125 Chinese yuan)
