BANGKOK: Tokyo rubber futures jumped 2.8 percent on Wednesday, revisiting a 5-month high on hopes for the long-awaited Greek bailout deal and firmness in oil prices, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for July delivery rose 9.2 yen to settle at 337.6 yen ($4.23) per kg.
It rose as much as 2.8 percent to an intra-day high of 337.8 yen per kg, the highest since September 26.
The most active rubber contract on the Shanghai rubber futures exchange for May delivery rose 190 yuan to finish at 29,100 yuan ($4,600)per tonne.
The front-month March TSR20 rubber contract on SICOM was last traded at 386.00 US cents per kg, up 5.4 cents.
"Rubber prices should rise further to test the new technical resistance of 338 yen as oil prices remain firm, and I think oil prices at above $100 should still support rubber," one dealer said.
Brent crude was slightly changed on Wednesday, retreating from a nine-month high, due to weaker Chinese manufacturing data. By 0737 GMT, it was at 106.37 a barrel.
Euro zone finance ministers agreed on a 130 billion euro ($172 billion) rescue for Greece to avert a chaotic default after forcing Athens to commit to unpopular cuts and private bondholders agreed to take bigger losses.
Dealers said technical sentiment on rubber improved after prices broke above a major resistance of 330 yen and were likely to rise further to test the next resistance of 338 yen, with limited supply on the physical market providing an additional support.
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