TOCOM rises to 1-week high on U.S.-China trade truce

* Tokyo Commodity Exchange (TOCOM) futures hit a 1-week high on Monday as investors’ risk appetite improved after the U.S.-China trade truce eased tensions between the world’s two biggest economies that have threatened global demand of the commodity.

* The benchmark TOCOM rubber contract for December delivery

finished higher 1.7 yen, or 0.9%, at 195.2 yen ($1.8) per kg, after touching the highest since June 24 of 197 yen earlier in the session.

* The United States and China agreed on Saturday to restart trade talks after President Donald Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing.

* “Risk appetite increased amid hopes for a Sino-U.S. trade deal, boosting stock and commodity markets,” said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.

* Japan’s benchmark Nikkei stock average jumped over 2% to near two-month highs on Monday as risk sentiment improved after the United States and China agreed to restart trade talks, while tech shares also got a lift on an easing of restrictions on Huawei.

* Oil prices rose more than $1 a barrel on Monday, with OPEC and its allies on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week.

* The U.S. dollar was quoted around 108.30 yen, compared with around 107.69 yen on Friday afternoon

* The most-active rubber contract on the Shanghai futures exchange for September delivery fell 60 yuan to finish at 11,410 yuan ($1,667) per tonne.

* “It seems that Shanghai remained under pressure due to signs of weakening local demand of automobiles and other products,” Tazawa said.

* TOCOM’s technically specified rubber (TSR) 20 futures contract for new January delivery closed at 156.3 yen per kg, down 0.4% from an opening price of 157.0 yen.

* The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 146.9 U.S. cents per kg, up 0.7%.