Tokyo rubber up on Shanghai gains
Benchmark Tokyo rubber futures edged up on Wednesday, supported by gains in Shanghai counterparts and a weaker yen against the dollar. The Tokyo Commodity Exchange rubber contract for May delivery finished 1.5 yen higher at 157.5 yen ($1.38) per kg. The benchmark contract has recovered more than 4 percent since hitting a 27-month low a week ago in line with the plunge in oil prices.
The dollar held near two-week highs on Wednesday, as concerns about Sino-US trade tensions propped up safe-haven currencies. The US dollar was quoted around 113.81 yen, compared with about 113.43 yen on Tuesday afternoon.
A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.
TOCOM's technically specified rubber (TSR) 20 futures contract for May delivery rose 1.4 yen to close at 144.4 yen per kg.
"TOCOM followed the most active Shanghai futures higher," said a Japanese trading source.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 25 yuan to finish at 10,870 yuan ($1,563) per tonne. The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 121.6 US cents per kg, up 0.2 cent.
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