Tokyo futures rise for 6th day, Thailand eyed

TOKYO: Key Tokyo rubber futures crept up on Wednesday for their sixth straight day of gains, helped in part by rises in the Shanghai market, though many investors were taking a wait-and-see stance ahead of economic data from China and as they gauged the impact of flooding in Thailand.

The key Tokyo Commodity Exchange rubber contract for March delivery settled up 0.6 yen at 320.2 yen per kg. Its six days of gains mark a rebound from a 12-month low of 289.5 yen hit two weeks ago.

The most active Shanghai rubber contract for January delivery climbed 2.4 percent to close at 28,900 yuan per tonne. Volume jumped more than 30 percent to 1,199,724 lots, up from 894,610 lots on Tuesday.

"The upside was heavy after the news that Japanese automakers in Thailand halted production due to floods. Investors are also wary of Chinese demand and are waiting to see Chinese data this week," said Kazuhiko Saito, chief commodities analyst at trading house Fujitomi.

Brent crude fell on Wednesday, snapping five days of gains, after OPEC cut its global oil demand forecast and plans for greater powers for a euro zone bailout fund hit a snag, rattling investor confidence.

The Nikkei average snapped a three-session winning streak on Wednesday on lingering worries over the global economy and as floods in Thailand shut factories run by Honda and many other Japanese manufacturers.

Thailand's prime minister warned businesses on Wednesday not to take advantage of flooding around the country to push up prices as residents of Bangkok cleared supermarket shelves, worried that the capital could be swamped in coming days.

Dealers said on Tuesday that natural rubber prices in India are likely to edge higher this week due to an improvement in demand from tyre makers amid falling imports and as overseas prices hardened.

Copyright Reuters, 2011