TOKYO, June 9 (Reuters) – Tokyo rubber futures rose to theirhighest in a week on Monday as gains in local shares and a dropin inventory of top buyer China helped boost buying interestsfor the soft commodity, dealers said.
The key Tokyo Commodity Exchange rubber contract forNovember delivery rose 0.8 yen, or 0.41percent, to settle at 193.8 yen ($1.89) per kg.
It climbed as high as 196.3 yen, the highest since June 3,before shaking off earlier gains following falls in the Shanghaimarket.
“Higher Japanese equities were behind the rise in the rubbermarket,” said Toshitaka Tazawa, an analyst with Fujitomi Co.
Japanese shares climbed to a three-month high after brightU.S. jobs data pointed to improving economic momentum.
U.S. employment returned to its pre-recession peak in Maywith a solid pace of hiring that offered confirmation theeconomy has snapped back from a winter slump.
A decline in rubber stockpile in China also supported somebuying, other dealers said.
Rubber inventories in warehouses monitored by the ShanghaiFutures Exchange fell 1.8 percent week-on-week, the exchangesaid on Friday.
“Investors were also trying to square their positions aheadof China’s key economic indicators due later this week,” saidFujitomi’s Tazawa, adding stronger-than-expected numbers maylead the rubber benchmark recover 200 yen per kg whileweaker-than-expected figures could send it to below 190 yen,last seen on Sept. 15, 2009.
China’s inflation data will be released on June 10, followedby industrial output, retail sales and urban investment on 13.
China’s exports gained steam in May thanks to firmer globaldemand, data showed on Sunday, but an unexpected fall in importssignalled weaker domestic demand that could continue to weigh onthe world’s second-largest economy.
The most-active rubber contract on the Shanghai futuresexchange for September delivery rose 40 yuan to finishat 14,240 yuan ($2,300) per tonne.
The front-month rubber contract on Singapore’s SICOMexchange for July delivery last traded at 167.3 U.S.cents per kg, up 0.6 cents.
($1 = 102.3900 Japanese Yen)
($1 = 6.2383 Chinese Yuan Renminbi)
(Reporting by Yuka Obayashi; Editing by Subhranshu Sahu)
– Reuters
