TOCOM rises on firm oil and Shanghai, but Nikkei weighs

Benchmark Tokyo rubber futures rose on Monday, helped by Friday's jump in oil prices and firmer Shanghai futures, but gains were capped by weakness in Tokyo's Nikkei share average, dealers said.

Oil prices surged 3 percent on Friday, but dipped on Monday, weighed down by rising U.S. output although a 13 percent fall in U.S. crude inventories since March indicated a gradually tightening market.

The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery finished 0.6 yen higher at 216.8 yen ($1.99) per kg, after touching a high of 219.4 yen earlier in the session.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 145 yuan to finish at 16,585 yuan ($2,486) per tonne.

"Strong oil prices last Friday and Shanghai gains lent support to the TOCOM, but languished Tokyo equities weighed on the market sentiment," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

Japanese stocks fell to a fresh 3-1/2-month low on Monday as global investors remained cautious amid worries over whether the Trump administration will be able to implement growth boosting measures.

"Since the TOCOM's forward-month contracts are cheaper than Shanghai prices, we may see more arbitrage deals, buying the TOCOM and selling Shanghai," Kikukawa said.

The front-month rubber contract on Singapore's SICOM exchange for September delivery last traded at 154.3 U.S. cents per kg, down 0.9 cent. ($1 = 109.0400 yen) ($1 = 6.6713 Chinese yuan)