TOCOM bounces back from early falls as Shanghai recovers

Benchmark Tokyo rubber futures came of early falls to extend gains into a second session on Monday, as Shanghai futures recovered from a near four-month trough.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, recovered as Shanghai futures turned higher after the head of a government research centre said the risk of a steep slide in China's economy has reduced.

Global oil prices pared early losses by Monday afternoon, also helping TOCOM, said a Tokyo-based broker.

The Tokyo Commodity Exchange rubber contract for August delivery finished 2.2 yen higher at 263.9 yen ($2.30) per kg. Earlier in the session, the contract fell to a low of 255.6 yen, near a 2-1/2-month low hit on Friday.

The most-active rubber contract on the Shanghai futures exchange for May delivery rose 145 yuan to finish at 17,820 yuan ($2,581) per tonne. The contract earlier hit a low of 17,150 yuan, the lowest since Nov. 21, 2016.

The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 199 U.S. cents per kg, down 0.6 cents.