TOCOM rubber rises to 2-week high tracking Shanghai rally

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TOKYO (Aug 9): rose nearly 3% on Wednesday to hit a two-week high as a rally in Shanghai prompted a flurry of buying, dealers said.

The (TOCOM) rubber contract for January delivery finished 5.6 yen, or 2.7%, higher at 215.4 yen ($1.96) per kg, after hitting the highest since July 26 at 216.3 yen.

The most-active rubber contract on the for January delivery surged 560 yuan to finish at 16,615 yuan (US$2,489) per tonne. earlier touched a high of 16,750 yuan, the highest since 7.

An overnight rally in Shanghai led to fresh buying in Tokyo in early trade and Shanghai’s further gains in day-trading then lent an extra push, a Tokyo-based dealer said.

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The front-month rubber contract on Singapore’s exchange for September delivery last traded at 151.0 US cents per kg, down 0.5 cent.

, the world’s biggest maker, on Wednesday lifted its net profit forecast for this calendar year by 3% to 289 billion yen (US$2.63 billion) due to higher-than-expected first-half profit, backed by product price rises that passed on higher material costs.

The Japanese company also said on Tuesday it would invest US$304.3 million for plant expansion in India over the next five years to boost tyre output to meet growing demand.

(US$1 = 109.8000 yen)
(US$1 = 6.6750 Chinese yuan renminbi) 

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