TOKYO, July 23 (Reuters) – Benchmark Tokyo rubber futures inched up to close at a near seven-week high on Tuesday, but gains were limited as the market came under pressure from a stronger yen.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for December delivery rose 0.1 yen to settle at 256.3 yen ($2.58) per kg, the highest closing since June 5.
“Declining domestic inventories and affordable domestic (rubber) prices are supporting the market, helping counter the impact of a stronger yen,” said a source with a Tokyo-based broker.
Industry data released on Friday showed a near five-month low in Japanese domestic rubber stocks. Against the yen, the dollar traded at 99.40, down from Monday’s high of 101.05.
Japanese stocks rose for a second day following Prime Minister Shinzo Abe’s weekend victory in upper-house elections. The win has strengthened Abe’s mandate to push through painful economic reforms to end decades of stagnation, although he will still have to overcome opposition in his party.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 200 yuan to finish at 18,380 yuan ($3,000) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 227.50 U.S. cents per kg, down 1.1 cent.
($1 = 99.4450 Japanese yen)
($1 = 6.1413 Chinese yuan)
(Reporting by Osamu Tsukimori; Editing by Subhranshu Sahu)
Source: Reuters
