Benchmark Tokyo rubber futures rose for a second day on Thursday, recovering further from a five-week low hit earlier in the week, as firmer Shanghai futures and rising stocks at home aided gains. The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery finished 1.6 yen higher at 189.7 yen ($1.73) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 80 yuan to finish at 11,685 yuan ($1,828) per tonne. The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 142.7 US cents per kg, up 0.6 cent. Japan's Nikkei share average climbed to a more than two-week high on Thursday to stay above a key technical level as it tracked Wall Street gains overnight.
"Investors looked for bargains while a rally in Shanghai also gave support," a Tokyo-based dealer said. The TOCOM futures, which set the tone for rubber prices in Southeast Asia, hit the lowest since May 1 earlier this week amid worries about high inventories in Asia and lower demand for tyres after US President Donald Trump threatened to impose tariffs on auto imports.
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