TOKYO (Dec 7): Benchmark Tokyo rubber futures climbed on Thursday as gains in Japanese stock market and a weaker yen against the US dollar helped boost risk appetite among investors, dealers said.
Japan’s Nikkei share average ended higher on Thursday, taking back some ground lost in the previous session as investors snapped up bargains after the benchmark index skidded its most in 8½ months.
The US dollar was quoted around 112.65 yen in late Thursday trade in Asia, compared with around 112.08 yen on Wednesday.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery finished up 1.8 yen, or 0.9%, at 207.0 yen (US$1.84) per kg.
But the most-active rubber contract on the Shanghai futures exchange for May delivery plunged 395 yuan, or 2.8%, to finish at 13,970 yuan (US$2,112) per tonne.
The TOCOM trade was thin as some investors awaited Chinese data for clues on the economic outlook for the world’s top rubber buyer.
A raft of Chinese data in coming weeks is expected to show the world’s second-largest economy came under growing pressure in November as the government intensified crackdowns on polluting industries and financial risks.
“Rubber prices should be headed lower as there are ample supplies in Asia, but it’s difficult to predict their direction because of unpredictable moves by speculators,” a Tokyo-based dealer said.
The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 142.1 US cents per kg, down 3.1 cents.
(US$1 = 112.6600 yen)
(US$1 = 6.6146 Chinese yuan)
