TOKYO (April 13): Benchmark Tokyo rubber futures rose to their highest in nearly two weeks on Friday, supported by a lower yen against the US dollar and subdued worries over US-China trade war, dealers said.
“Yen’s fall lent support,” said Satoru Yoshida, a commodity analyst with Rakuten Securities, adding that a gradual recovery in Shanghai futures since late March also helped improve market sentiment.
The US dollar gained to 107.57 yen, a level not seen since Feb. 22, as an improvement in investor risk appetite buoyed equities and pushed US yields significantly higher.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery finished 1.8 yen higher at 184.8 yen (US$1.72) per kg, after touching the highest since April 2 at 185.0 yen. For the week, it booked a 3.1% gain.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 40 yuan to finish at 11,505 yuan (US$1,829) per tonne.
“Higher stock prices amid receded concerns over trade war were also behind TOCOM’s gain,” Yoshida said, adding that the Tokyo benchmark would rise towards 188 yen per kg in the next week.
Asian stocks were cautiously higher on Friday ahead of the US earnings season and as investors pondered the implications of geopolitical tensions in the Middle East and the prospect of a global trade war.
The front-month rubber contract on Singapore’s SICOM exchange for May delivery last traded at 138.4 US cents per kg, down 0.4 cent.
(US$1 = 107.5700 yen)
(US$1 = 6.2903 Chinese yuan)
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