TOKYO, April 16 (Reuters) – Benchmark Tokyo rubber futuresrose 1.1 percent on Wednesday, supported by Japan’s Nikkei stockindex and a softer yen, brokers said.
The benchmark rubber contract on the Tokyo CommodityExchange (TOCOM) for September delivery rose 2.3 yen tosettle at 217.8 yen ($2.14) per kg.
The benchmark contract has dropped around 20 percent thisyear, mainly due to concerns over demand in China and thecountry’s high rubber inventory.
“The Nikkei’s comfortable gains helped push the rubbermarket higher,” said a broker who declined to be identified.
A few cargoes of Indonesian and Malaysian tyre grades weretraded this week, dealers said on Wednesday, but prices cameunder pressure because of uncertainty over demand and slowereconomic growth in top consumer China.
The U.S. dollar stood firm around 102.30 yen, while Japan’s Nikkei share average surged after a better performanceon Wall Street the day before and comments from Japanese FinanceMinister Taro Aso that the market took to suggest more stockbuying by the government’s pension fund.
The most-active rubber contract on the Shanghai futuresexchange for September delivery rose 15 yuan to finishat 15,025 yuan ($2,400) per tonne.
The front-month rubber contract on Singapore’s SICOMexchange for May delivery last traded at 180.90 U.S.cents per kg, up 0.5 cents.
($1 = 6.2220 Chinese Yuan)
($1 = 101.6450 Japanese Yen)
(Reporting by Osamu Tsukimori; Editing by Anupama Dwivedi)
– Reuters
