TOKYO: Benchmark Tokyo rubber futures rose in light trade on Monday as stronger stock prices in China helped improve market sentiment, dealers said.
“There was no fresh fundamental news on rubber, but a sharp rally in Shanghai equities market lent psychological support,” said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
China’s benchmark blue-chip index surged over 4 percent on Monday, its best daily performance in almost three years, while shares in Hong Kong added more than 2 percent, as investors took heart from Chinese regulators’ statements of support.
The Tokyo Commodity Exchange (TOCOM) rubber contract for March delivery finished 2.5 yen, or 1.5 percent, higher at 169.3 yen ($1.5) per kg.
TOCOM’s new technically specified rubber (TSR) 20 futures contract for April delivery climbed 2.3 cent, or 1.5 percent, to close at 152.0 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for January delivery gained 45 yuan to finish at 12,060 yuan ($1,738) per tonne, recovering from an about 5-week low hit the previous session.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery was last traded at 132.8 U.S. cents per kg, up 1.0 cent.
“It’s hard to predict where the rubber market is headed, but it will be impacted by external factors such as China’s economic indicators and stock prices,” Tazawa said.
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Source: Brecorder
