BEIJING: Benchmark Tokyo rubber futures jumped on Tuesday, tracking strong Shanghai futures, as falling output in major rubber-producing regions boosted prices.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, were also supported by a weaker yen.
"Output is falling in major rubber production regions overseas. Prices of raw materials are quite strong," said Tang Xiaonan, analyst, JLC Network Technology Co Ltd.
"Rubber prices might also have been boosted as capital re-entered the market after the Chinese New Year holiday," Tang said.
The Tokyo Commodity Exchange rubber contract for July delivery finished 3.1 yen ($0.0280) higher at 180.9 yen per kg.
TOCOM's technically specified rubber (TSR) 20 futures contract for August delivery rose 3.6 yen to close at 153.1 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 285 yuan ($42.07) to finish at 11,615 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 132.5 U.S. cents per kg, up 1.7 cent.
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