TOKYO (Sept 13): Benchmark Tokyo rubber futures bounced back on Tuesday to close 0.6% higher as investors went bargain hunting after a near four-percent fall a day earlier, but weaker oil prices and a stronger yen limited gains.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, stood near a 1½-week low hit a day earlier, although Chinese data showed signs of recovery in the world’s second-biggest economy.
China’s industrial output grew the fastest in five months in August as demand for products from coal to cars rebounded, thanks to higher government spending and a year-long credit and property boom.
The US dollar was trading at 101.80 yen, compared with 102.25 yen on Monday afternoon.
“The market rebounded on bargain hunting after a sharp decline yesterday,” said a Tokyo-based broker.
Oil prices fell on Tuesday on concerns over increased drilling in the United States.
The Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> finished 0.9 yen higher at 153.9 yen (US$1.51) per kg.
The most active rubber contract on the Shanghai futures exchange for January delivery ended lower as oil prices weakened further by late afternoon, falling 70 yuan to finish at 12,440 yuan (US$1,862) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 129.40 US cents per kg, down 2.2 cents.
(US$1 = 6.6798 Chinese yuan renminbi)
(US$1 = 101.8400 yen)