TOCOM CUTS EARLY LOSSES TO END HIGHER ON SHANGHAI RECOVERY

Benchmark Tokyo rubber futures recouped early losses to end higher on Wednesday after Shanghai futures regained some ground and a softer yen prompted buying.

The Tokyo Commodity Exchange rubber contract for new April delivery finished at 179.0 yen ($1.72) per kg, up 1.1 yen, or 0.6 percent, from its opening price of 177.9 yen.

"TOCOM went down in early trade following an overnight plunge in Shanghai futures, but it bounced back after Shanghai recovered from a bottom in late trade," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

The most-active rubber contract on the Shanghai futures exchange for January delivery fell 105 yuan to finish at 14,020 yuan ($2,071.27) per tonne, after tumbling to a low of 13,580 yuan.

The U.S. dollar stood at 104.14 against the yen, slightly lower on the day, but not far from a roughly three-month high of 104.87 yen struck on Tuesday.

"If the yen falls to as low as 107 yen, TOCOM rubber may try new highs, but otherwise I expect to see a boxed-range trade for a while," Kikukawa said.

A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, hit a five-month high of 184.6 yen early last week.

The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 146.5 U.S. cents per kg, unchanged from the previous day.