Benchmark Tokyo rubber futures hit their highest in nearly two weeks on Monday as sharp gains in Shanghai futures and a weaker yen buoyed market sentiment. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, jumped more than 5 percent to 327.8 yen ($2.88) at one point, the highest since February 1.
The Tokyo Commodity Exchange rubber contract for July delivery finished 14.3 yen, or 4.6 percent, higher at 326 yen per kg. The most-active rubber contract on the Shanghai futures exchange for May delivery rose 1,150 yuan to finish at 22,005 yuan ($3,197) per tonne. The front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 229.40 US cents per kg, up 5.6 cents. Brokers said TOCOM has been tracking Shanghai closely recently, which got support from much stronger-than-expected Chinese trade data.
The dollar rose to a two-week high versus the yen, with the market breathing a sigh of relief as the closely watched two-day US-Japan summit held over the weekend was seen to have ended smoothly. China's natural and synthetic rubber imports last month rose 10.9 percent from a year earlier to 510,000 tonnes, trade data showed on Friday.
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