Tokyo futures up on oil, gains still capped

BANGKOK: Tokyo rubber futures rose further on Thursday on the back of firm oil prices, but light trade due to an absence of Chinese investors and concerns about Europe's debt crisis continued to limit price increases, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for March delivery rose 3.8 yen to settle at 308.2 yen ($4.0) per kg.

"The market should move higher as sentiment improved and oil prices still offered support, but the market still lacked a strong buying force as Chinese players are still off," said a Japanese trader.

China's financial markets are closed for a week-long national holiday. Trading will resume on Monday.

Brent crude held above $102 a barrel after surging in the previous session as pessimism about weaker demand was outweighed by a surprise drawdown of US inventories and concerns that Libya's largest oilfield could be damaged.

Dealers said TOCOM prices should rise further on Friday. However, gains were still likely to be capped by concerns over European efforts to resolve the debt crisis.

Copyright Reuters, 2011