Key Tokyo rubber futures rose 3 percent to a six-week high on Wednesday as sentiment was helped by a rise in oil prices on signs of progress in talks to resolve US debt issues and strong US housing data. The key Tokyo Commodity Exchange rubber contract for December delivery rose as high as 390.9 yen per kg, up 12.1 yen or 3.2 percent, the highest for any benchmark since June 9.
The contract settled at 388.9 yen, up 10.1 yen or 2.7 percent. The most active Shanghai rubber contract for January delivery closed on Wednesday at 35,870 yuan ($5,549.711) per tonne, up marginally from Tuesday's 35,855 yuan per tonne. Volume slipped to 805,276 lots from 831,876 lots on Tuesday. The rubber market was supported by a weaker yen during most of the day session. A softer yen inflates yen-priced TOCOM futures.