TOCOM rises on hopes for Sino-US trade talks

BEIJING: Benchmark Tokyo rubber futures rose on Thursday, tracking gains in Shanghai on hopes a deal could be struck in the bitter tariff dispute between the United States and China after Washington reached out to Beijing for a new round of trade talks.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, rose to a one-week high in early trade, following news that the United States has sent an invite to China for a new round of trade talks.

"There was impact from the news of easing Sino-US trade tension. A report that Thailand would reduce its stocks earlier this week also pushed up prices," said Shen Xiaoxia, an analyst with Zheshang Futures.

"I think rubber is gradually going strong, as there is talk in the market that rubber raw materials stocks overseas are quite low, and demand, though weak, probably won't be lower."

The Tokyo Commodity Exchange rubber contract for February delivery finished 0.3 yen higher at 167.6 yen per kg.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 260 yuan to finish at 12,420 yuan per tonne.

The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 133.3 US cents per kg, up 0.7 cent.