TOKYO: Key Tokyo rubber futures rose on Friday as sentiment improved on a recovery in oil prices after a sell-off the day before and on firmness in other commodities.
The benchmark TOCOM rubber futures for October delivery settled at 371.5 yen per kg, up 9.3 yen, or 2.6 percent, for a weekly gain of 3 percent, swinging from a 7 percent drop last week.
That marked the first weekly gain since mid-April.
Traders said on Thursday's sell-off brought prices to a reasonable level for buying, but investors remained wary of demand outlook and more supply expected from producer countries as they start tapping.
Some technical analysts have also warned of a downside risk on bearish technicals as the market settled below its 200-moving average which stood at 378.7 yen on Friday.
The most active Shanghai rubber futures contract for September delivery closed up 1,765 yuan, or 5.9 percent, at 31,510 yuan ($4,848.759) per tonne on Friday, volume rose to 1.16 million lots from Thursday's 1.04 million lots.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange climbed 19.5 percent from last Friday.
U.S. crude oil futures gained more than $1 a barrel to above $100 on Friday as the oil market continued to experience high volatility.
The euro rose against the dollar on Friday after strong growth data in France and Germany bolstered speculation that a healthy euro zone economy would keep interest rates in the region higher than U.S. ones.
Tokyo stocks fell to a two-week low in heavy volume on Friday as bank shares tumbled after the government's top spokesman sparked concerns that banks are likely to be asked to ease troubled Tokyo Electric Power Co's loan burden.
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