Tokyo futures higher, but Fed meeting caps gains
BANGKOK: Tokyo rubber futures ended higher on Wednesday as steadier oil encouraged players to take speculative buying positions after prices had fallen to a one-month low, but gains were limited ahead of news from a US Federal Reserve meeting.
The benchmark rubber contract on the Tokyo Commodity Exchange for February delivery rose 1.7 yen to settle at 353.3 yen ($4.6) per kg.
The most active rubber contract on the Shanghai futures exchange for January delivery rose 255 yuan to finish at 32,060 yuan ($5,021) per tonne.
"TOCOM rubber should rise further after prices found support at 350 yen, but players were still reluctant to take any aggressive position before the Fed decision," one dealer said.
The Federal Reserve is expected to end its meeting on Wednesday with a decision to stock up on longer-term Treasury paper in a bid to boost a fading economic recovery.
Dealers said they expected TOCOM prices to move in a narrow range, with 350 yen seen as a strong support level, while resistance is pegged at 360 yen.
Copyright Reuters, 2011
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