TOKYO: Tokyo Commodity Exchange (TOCOM) rubber futures rose on Monday, tracking gains in Shanghai futures and a stronger Nikkei stock index helping boost risk appetite, though fears over a spike of the coronavirus cases in many parts of the world limited gains.
TOCOM's rubber contract for December delivery finished 1.7 yen higher at 156.8 yen ($1.46) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 30 yuan to finish at 10,600 yuan ($1,514) per tonne.
"The Shanghai's bullish tone led the way," a Tokyo-based dealer said, adding other external factors such as a rally in Japanese equities and a softer yen also provided support.
The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 117.8 US cents per kg, down 0.5%.
Japan Exchange Group (JPX), which bought the TOCOM last October, plans to have commodity derivatives such as rubber futures and gold futures transferred to Osaka Exchange (OSE), which is also under JPX, on July 27. "We hope to see a pick-up in trading volume for commodity futures as the OSE plans to offer some incentives to attract more trades for rubber, precious metals and agricultural products which are due to be transferred from the TOCOM," the Tokyo-based dealer said.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
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