By Lucy Craymer
Rubber futures closed higher Monday as volumes remained light with China out on holiday this week and producers remained hesitant to enter the market with prices so low.
Tokyo rubber futures ended higher, boosted by robust Japanese stocks but markets will continue to remain under pressure over weak demand from top buyer China
Japan’s Nikkei 225 Stock Average closed up 1.6%, after the Nikkei Japan Services purchasing managers index for September cooled to 51.4 from 53.7 in August, which was the highest in almost two years. A reading above the 50 level indicates expansion, and below that indicates contraction.
However, trading is expected to be thin in the coming days as “traders and investors are shying away from taking fresh positions” due to national holidays in the Chinese financial markets, says a Tokyo-based analyst.
Asian Rubber Futures Oct. 5 Change from previous close Tocom Mar RSS3 T171 Kg Up Y1.0 Shanghai Jan SCR5 CLOSED CLOSED Thai May RSS3 THB51.20/Kg Up THB0.25 Sicom Mar RSS3 139.5 US cents/Kg Up 1.5 US cents Sicom Mar TSR20 124.5 US cents/Kg Up 1.1 US cents/Kg Asian Physical Rubber Grade Shipment Oct. 5 Oct. 2 RSS3 Nov/Dec 133/134 133/133.4 STR20 Nov/Dec 123/132 129/130 SMR20 Nov/Dec 130/131 130/131 SIR20 Nov/Dec 125/125 124/125 SVR3L Nov 132 130/131 USS Oct THB41.99-THB42.22/Kg THB41.79-THB41.98/Kg