TOCOM edges higher on further China stimulus hopes

TOKYO: Benchmark Tokyo rubber futures edged higher on Wednesday, supported by growing expectations of more stimulus measures to boost the economy in China, the world's biggest rubber buyer.

China's central bank injected a record $83 billion into the country's financial system on Wednesday, seeking to avoid a cash crunch that would put further pressure on the weakening economy.

China's policymakers are pledging to step up stimulus measures this year and do more to protect jobs as economic growth cools to 28-year lows.

"Increasing hopes for China's economic stimulus have outweighed worries over U.S.-China trade war," said Satoru Yoshida, a commodity analyst with Rakuten Securities.

The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery  finished 0.8 yen, or 0.4 percent, higher at 183.6 yen ($1.69) per kg.

Oil prices firmed on Wednesday after climbing about 3 percent in the previous session as expectations that OPEC-led supply cuts will tighten markets despite signs of a global economic slowdown.

"The positive tone in rubber markets, backed by China's stimulus measures, is likely to stay for a while," Yoshida said.

TOCOM's technically specified rubber (TSR) 20 futures contract for July delivery rose 0.7 percent to close at 152.1 yen per kg.

The most-active rubber contract on the Shanghai futures exchange for May delivery rose 120 yuan to finish at 11,640 yuan ($1,723) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 134.2 U.S. cents per kg, up 0.8 percent.