TOKYO, May 26 (Reuters) – Tokyo rubber futures rose onMonday to one-week highs as a firmer equity market in Japan anda stockpile draw in top buyer China supported investors’sentiment, dealers said.
The Tokyo Commodity Exchange rubber contract for Octoberdelivery closed up 1.7 yen at 206.0 yen($2.02) per kg, after climbing as high as 207.1 yen, the highestsince May 20.
The contract for May delivery expired on Monday at 191.4yen.
“The TOCOM’s gains were accelerated after Shanghai marketopened with a strong tone this morning due in part to a declinein inventories,” Toshitaka Tazawa, an analyst at Fujitomi Co,said.
Rubber inventories in warehouses monitored by the ShanghaiFutures Exchange fell 2.3 percent week-on-week, the exchangesaid on Friday, hitting their lowest level since late November
“With healthy stock market in Tokyo, the rubber market maytest the recent high of 209 yen as a risk of sharp decline has diminished,” he said.
Japan’s Nikkei share average ended at a seven-weekhigh on Monday, with financials leading the gains, helped by theyen’s retreat against the dollar and a record-high for WallStreet on upbeat U.S. housing data.
Against the yen, the greenback hit a fresh 1-1/2 week highof 102.05 early in the session, and was last up slightlyat 101.92 yen.
The most-active rubber contract on the Shanghai futuresexchange for September delivery rose 275 yuan to finishat 14,735 yuan ($2,400) per tonne.
“Market participants are also closely watching politicaldevelopment of a major rubber producer Thailand,” Fujitomi’sTazawa said.
Thai coup leader General Prayuth Chan-ocha said on Monday hehad been formally endorsed by the king as head of a militarycouncil that will run the country, and warned he would use forceif political protests flared up again.
The front-month rubber contract on Singapore’s SICOMexchange for June delivery last traded at 170.20 U.S.cents per kg, unchanged from Friday. ($1 = 6.2365 Chinese Yuan) ($1 = 101.8250 Japanese Yen) (Reporting by Yuka Obayashi; Editing by Anand Basu)
-Reuters
