BANGKOK: Tokyo rubber futures rose over 2 percent on Wednesday, with investor appetite for risk boosted as President Barack Obama was re-elected in the United States, paving the way for continued monetary stimulus in the world's largest economy.
The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery climbed 2.4 yen to settle at 249.0 yen ($3.10) per kg. It had gained 5.9 yen, or 2.3 percent, to 252.5 yen before profit-taking set in.
The most-active rubber contract on the Shanghai Futures Exchange, for May delivery, advanced 195 yuan to finish at 24,005 yuan ($3,800) per tonne.
The front-month SICOM rubber contract in Singapore, for December delivery, was last traded at $2.78 per kg, up 1.4 cents.
"Obama's victory signalled that flexible trade policy and stimulus packages will remain and that spurred speculative buying," said a Bangkok-based dealer.
Obama won a second term in the White House, overcoming deep doubts among voters about his handling of the US economy to score a clear victory over Republican challenger Mitt Romney.
Dealers said they expected TOCOM prices to be trapped in a narrow range of 240-250 yen after prices failed to break above major resistance at 250 yen.
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