Benchmark Tokyo rubber futures hit a two-week high on Monday, supported by gains in Shanghai futures and oil prices. The Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery finished 5.2 yen, or 2.8 percent, higher at 193.8 yen ($1.82) per kg, after hitting the highest since February 8 at 194.5 yen earlier in the session.
"There was no fresh fundamental news, but rubber market was lifted by stronger Shanghai futures and rising oil prices," said Hiroyuki Kikukawa, general manager of research at Nissan Securities. The most-active rubber contract on the Shanghai futures exchange for May delivery rose 175 yuan, or 1.4 percent, to finish at 12,935 yuan ($2,050) per tonne. The front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 147.9 US cents per kg, up 0.9 cent.
Oil prices steadied after hitting their highest level in nearly three weeks, supported by comments from top oil exporter Saudi Arabia that it would continue to curb shipments in line with the Opec-led effort to cut global supplies. "The recent rally in rubber markets also reflected subdued concerns over further sell-off in global stock markets," Kikukawa said.
Asian shares made guarded gains on Monday as investors braced for an event-packed week headlined by US inflation data and the first House testimony by the new head of the Federal Reserve.