TOCOM hits 2-week high as strong Shanghai boosts risk appetite

Benchmark Tokyo rubber futures jumped to a 2-week high on Wednesday as stronger Shanghai futures and an overnight gain in oil prices boosted risk appetite, dealers said.

Oil prices rose nearly 2 percent and hit a one-week high on Tuesday, boosted by a weaker dollar and short covering, although they slipped on Wednesday after an industry report said U.S. inventories increased.

The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished 5.6 yen higher at 199.2 yen ($1.78) per kg. It touched the highest since June 16 of 202 yen earlier in the session.

"Shanghai futures rose on expectations of healthier economic indicators in China. That lent support to the TOCOM," said Satoru Yoshida, commodity analyst atRakuten Securities.

The most-active rubber contract on the Shanghai futures exchange for September delivery surged 285 yuan to finish at 13,080 yuan ($1,924) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 144.0 U.S. cents per kg, up 1.2 cent.

Crude rubber inventories at Japanese ports stood at 4,999 tonnes as of June. 20, up 5.8 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Wednesday. ($1 = 112.1400 yen) ($1 = 6.7986 Chinese yuan renminbi)