Tokyo futures up; players await BOJ meeting

BANGKOK: Tokyo rubber futures inched higher on Tuesday as a weaker yen spurred buying, but upside was limited as players waited for a clear direction from the Bank of Japan's policy meeting later this week.

The benchmark rubber contract on the Tokyo Commodity Exchange for July delivery gained 1.4 yen to settle at 331.6 yen ($3.55) per kg.

The benchmark contract rose to a 10-month high of 337.8 yen last Wednesday, helped by easing yen.

Tokyo's financial markets were closed on Monday for a national holiday. Markets in China are closed this week for the Lunar New Year holiday.

"Again, the yen and hopes about Japan's easing monetary policy help supported TOCOM prices. But trading remained thin as players wanted to see BOJ's decision before taking any position," said a Bangkok-based dealer.

The yen wallowed close to recent lows in Asian trading on Tuesday after a US Treasury official implied tolerance of a weaker Japanese currency as a side-effect of efforts to whip deflation.

The Bank of Japan will hold its regular meeting on Wednesday and Thursday, and is expected to keep monetary policy steady for now.

Dealers said TOCOM prices could rise further this week as sentiment improved after prices broke a major resistance of 330 yen level.