TOKYO, Aug 7 (Reuters) – Benchmark Tokyo rubber futures ended up nearly 1 percent on Thursday, rising for the first time in five sessions helped by a weaker yen against the dollar.
The yen sagged against the dollar by 0.3 percent on Thursday, coming under pressure from news that Japan’s public pension fund plans to increase its allocation to the domestic stock market.
Tokyo shares pushed higher after political sources told Reuters that Japan’s Government Pension Investment Fund (GPIF)plans to put over 20 percent of its funds in domestic stocks compared with a current 12 percent target.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for January delivery rose 1.5 yen to settle at 205.9 yen ($2) per kg.
“The weaker yen helped boost the rubber market late in the session,” said a Tokyo-based broker who declined to be named.
Crude rubber inventories at Japanese ports fell 4.3 percent to 18,365 tonnes as of July 31, industry data showed after the market closed.
India’s natural rubber imports in July rose 14.8 percent from a year ago to 36,997 tonnes, the state-run Rubber Board said on Wednesday, as tyre-makers raised overseas purchases to meet rising demand.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 120 yuan to finish at 15,560 yuan ($2,527) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery last traded at 168.5 U.S. cents per kg, up 0.5 cent.
(1 US dollar = 6.1583 Chinese yuan)
(1 US dollar = 102.2900 Japanese yen)
(Reporting by Osamu Tsukimori; Editing by Anupama Dwivedi)
