TOCOM rebounds after 4-day losing streak on short-covering

Benchmark Tokyo rubber futures rose on Thursday, snapping a four-session losing streak and recovering from a three-week low hit in the prior session, as an overnight rebound in oil prices prompted short-covering, dealers said.

The Tokyo Commodity Exchange rubber contract for September delivery closed 0.7 yen, or 0.3 percent, higher at 205.6 yen ($2) per kg.

"Higher oil prices led to a flurry of buys in early trade," said Jiong Gu, analyst at Yutaka Shoji Co.

Both Brent and U.S crude prices gained on Wednesday after data from the Energy Information Administration (EIA) showed a fall in rigs drilling for oil resulted in a drop in U.S. output last week for the first time since late-December.

But oil prices fell again on Thursday as attention returned to nuclear talks with Iran, with the prospects for a deal and an increase in Iranian crude exports helping to keep pressure on prices.

"Rubber prices rebounded a bit today, but the overall sentiment in the market is still weak. The benchmark may test 200 yen if it falls below an intra-day low of 203.5 yen hit on March 11," Gu said.

The most-active rubber contract on the Shanghai futures exchange for September delivery rose 150 yuan to close at 12,770 yuan ($2,061) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 140.4 U.S. cents per kg, down 1.3 cent.