Key Tokyo rubber futures rose 3 percent on Tuesday, supported by a weaker yen and strength in the Shanghai rubber futures market. The benchmark TOCOM rubber futures for October delivery settled up 11 yen or 3 percent at 381.4 yen per kg. The benchmark settled slightly above its 200-moving average, which stood around 379 yen on Tuesday, suggesting the bearish technical outlook may be changing, traders said.
The most active Shanghai rubber futures contract for September delivery closed up 365 yuan or 1.2 percent at 31,570 yuan ($4,850.415) per tonne on Tuesday. Volume stood at 1.4 million lots. Brent oil hovered near $111 a barrel on Tuesday as investors tread cautiously given debt issues in the eurozone and ahead of weekly US data expected to show builds in US crude and gasoline stocks.
The euro held steady against the dollar on Tuesday, pulling away from a seven-week low hit the previous day, but downside risks persisted after its recent breach of a technical support level and due to the lingering threat of further long liquidation. The yen fell broadly, with the dollar rising 0.6 percent to 81.30 yen. Rubber in Asia changed hands at below $5 a kg for nearby delivery, with buying interest coming from major tyre makers, but main consumer China was elusive because of high inventories in bonded warehouses, dealers said on Monday.
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