TOKYO: Benchmark Tokyo rubber futures extended gains into a fourth session on Wednesday, hitting a near three-year high, as speculators stepped up buying after a surge in Shanghai futures.
"Both Shanghai and Tokyo markets have been buoyed by massive speculative buying," said Jiong Gu, analyst, Yutaka Shoji Co.
The Tokyo Commodity Exchange rubber contract for May delivery closed up 12.6 yen, or 4.9 percent, at 272.3 yen ($2.37) per kg. Earlier in the session, it hit the highest since Dec. 30, 2013 of 273.6 yen.
The most-active rubber contract on the Shanghai futures exchange for May delivery jumped 700 yuan to finish at 20,310 yuan ($2,943.78) per tonne. Early in the day, it touched a high of 20,580 yuan, the highest since Jan. 24, 2014.
"Lower local inventories lent a support to the TOCOM, but the recent rally has been more to do with speculative buying than any fresh fundamental factors," Gu said.
Crude rubber inventories at Japanese ports stood at 5,969 tonnes as of Nov. 30, down 7.2 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Tuesday.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 217.0 U.S. cents per kg, up 11.4 cent.
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