TOKYO, Aug 6 (Reuters) – Benchmark Tokyo rubber futures rose in thin trade on Tuesday as higher Tokyo and Shanghai equities led financial institutions to pick up contracts for the soft commodity.
The contract also got support as the yen weakened slightly against the dollar in Asia afternoon trade, making the Japanese currency-denominated asset more affordable when purchased in other currencies.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for January delivery gained 1.7 percent to settle at 249.9 yen per kg.
Trading volume was thin with 4,933 contracts changing hands on the day, less than a daily average of 7,515 year-to-date and 8,232 last year, as investors took summer holidays.
“There is nothing special in the market, TOCOM is just following the rise in Asia stocks,” said a Singapore-based trader, adding that “non-rubber guys” like banks and funds were doing most of the trading.
Japan’s Nikkei benchmark gained 1 percent, while the Shanghai Composite Index rose 0.5 percent.
The yen was quoted at 98.43 to the dollar in afternoon Asia trade, after falling as low as 97.81 during the session.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 220 yuan to finish at 18,400 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery last traded at 225 U.S. cents per kg, or 0.9 percent higher. (Reporting by James Topham; Editing by Anupama Dwivedi)
Source: Reuters
