Tokyo Commodity Exchange (TOCOM) futures recovered on Wednesday, tracking a rally in Shanghai futures amid growing optimism over Chinese economy on the back of a strong economic indicator. The benchmark TOCOM rubber contract for September delivery finished 1.6 yen, or 0.9 percent, higher at 185.4 yen ($1.66) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 100 yuan to finish at 11,770 yuan ($1,755) per tonne. TOCOM's technically specified rubber (TSR) 20 futures contract for October delivery closed up 1.9 percent at 167.2 yen per kg. The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 147.4 US cents per kg, up 0.7 percent.
Activity in China's services sector picked up to a 14-month high in March as demand improved at home and abroad, a private business survey showed on Wednesday, adding to signs that government stimulus policies are gradually kicking in. "Upbeat China's PMI helped boost risk appetite among investors," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co, referring to the Caixin/Markit services purchasing managers' index. "Still, TOCOM's gains may be capped by lingering concerns over US-China trade talks as well as US-Japan trade discussions due later this month," he said.
Comments
Comments are closed.