TOKYO: Tokyo Commodity Exchange (TOCOM) rubber futures reversed from a 3-1/2-week low to end higher on Monday, as hopes for an economic recovery outweighed fears over Sino-US frictions and protests in US cities.
TOCOM's rubber contract for November delivery finished 0.8 yen higher at 154.3 yen ($1.4) per kg. It touched its lowest since May 7 of 149.6 yen in early trade.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 110 yuan to finish at 10,315 yuan ($1,447) per tonne.
The TOCOM was also lifted by a weaker yen, which makes yen-denominated assets more affordable when purchased in other currencies. The US dollar was quoted around 107.49 yen, compared with 107.10 yen in late Asia trade on Friday.
Still, gains in rubber prices were limited by concerns over worsening Sino-US ties as top rubber buyer China said on Monday US attempts to harm Chinese interests will be met with firm countermeasures.
The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 112.4 US cents per kg, up 1.2%.
"Higher equities in Tokyo lent support as it underlined investors' optimism for a pick-up in global economy, including Japan," said Satoru Yoshida, a commodity analyst at Rakuten Securities.
Japan's benchmark Nikkei stock average rallied to a three-month high on Monday, as US President Donald Trump's threats against China over new security laws for Hong Kong were less threatening than feared.
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