TOCOM HITS 1-1/2-YEAR HIGH ON YEN’S DIP, FIRMER SHANGHAI

Benchmark Tokyo rubber futures surged for a third straight session on Thursday to hit their highest levels since June 2015, as a sharp fall in the yen against the dollar and firmer Shanghai futures prompted a flurry of buying, dealers said.

The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished up 9.3 yen, or 4.1 percent, at 238.8 yen ($2.11) per kg. Earlier in the session, it touched its highest level since June 8, 2015, of 241.1 yen.

Tokyo markets were closed on Wednesday for a public holiday.

"The TOCOM has been driven by plunging yen, or soaring U.S. dollar amid an expectation for an increase in the U.S. infrastructure spending by 'Trumpnomics'," said Satoru Yoshida, commodity analyst, Rakuten Securities.

The dollar was up 0.9 percent at 113.49 yen in late Asia trade on Thursday, hitting an eight-month high. It has gained sharply since Trump's victory earlier this month. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

The most-active rubber contract on the Shanghai futures exchange for January delivery touched a high of 18,400 yuan per tonne, the strongest level since June 2014, before closing up 240 yuan at 17,775 yuan ($2,570.13) per tonne.

"Some investors took profits in Shanghai with a feeling of accomplishment after seeing the benchmark breaking above the 18,000 yuan mark," Yoshida said.

"Rubber prices also got a lift from higher prices of industrial metals," he added.

London zinc hit an eight-year high and copper jumped for a fourth day in a row on Thursday as investors poured funds into metals in expectation of inflation in China and the United States, and on signs of growing strength in the U.S. manufacturing sector.

The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 177.0 U.S. cents per kg, up 3.0 cent.