The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery rose 6.6 yen to settle at 277.9 yen ($3.57) per kg. It rose as much as 3 percent to an intra-day high of 279.7 yen, the highest since December 14. "TOCOM sentiment improved as prices were supported by stocks and oil. However, the upside may still be capped by profit-taking," one dealer said. US housing starts and building permits jumped to a 1-1/2 year high in November as demand for rental apartments rose, suggesting the housing market was entering a tentative recovery. With upbeat US data that pointed to a recovery in demand in the world's biggest oil consumer, Brent crude futures rose above $107 on Wednesday, gaining for a third straight day. US stocks also rallied nearly 3 percent on Tuesday as investors bought surging banks, homebuilders and networking companies, though low volume was seen as amplifying the market's move.