Tokyo futures steady as firmer stocks, Shanghai support

TOKYO: Key Tokyo rubber futures were steady on Thursday, supported by firmer stocks and Shanghai futures, though they trimmed earlier gains as oil prices slid on concerns about US demand.

The benchmark rubber contract on the Tokyo Commodity Exchange for February delivery was nearly flat, settling up 0.4 yen, or 0.1 percent, at 360.9 yen per kg.

Over the past four sessions, the market has fallen below its key 50-day moving average, which stood at 371.7 yen on Thursday.

The most active Shanghai rubber contract for January delivery inched up 0.3 percent, or 115 yuan, to close at 33,065 yuan ($5,169) per tonne on Thursday. Volume picked up to 934,794 lots from Wednesday's 869,178 lots.

The Nikkei stock average climbed nearly 2 percent on Thursday, moving away from a 2-1/2 year closing low hit the previous day as investors bought back shares after France and Germany said Greece's place remains in the euro zone.

But persistent worries about whether euro zone policymakers can really help Greece avoid default pushed the euro lower on Thursday.

The leaders of France and Germany told Greek Prime Minister George Papandreou in a conference call on Wednesday that it was vital to implement reforms and meet fiscal goals set under a July 21 bailout plan.

On top of fears over Europe's debt crisis denting energy use and a stronger dollar, rising fuel stocks and falling demand in top consumer the United States reinforced worries that economic growth in the US is crumbling and pressured oil prices.

Copyright Reuters, 2011