Tokyo futures up, fears of Chinese measures lingers

Friday, 19 November 2010 03:30 - - {{hitsCtrl.values.hits}}

BANGKOK, (Reuters) - Tokyo rubber futures rose 2.7 percent on Thursday, recovering from early session losses to follow Shanghai rubber futures higher after they rose on speculation, dealers said.

But worry about more Chinese moves to bring down inflation lingered and limited gains in the rubber market, they said.

The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery rose 8.6 yen to settle at 362.1 yen ($4.35) per kg. It rose as much as 2.7 percent from Wednesday’s close because of a rebound in oil prices and rising Shanghai rubber futures.

“TOCOM took cues from Shanghai rubber futures which were higher since trading started but fears of possible Chinese measures to cool down the economy still weighed,” a dealer said.

The most active Shanghai rubber futures for May delivery rose 1,370 yuan to finish at 33,225 yuan ($5,002) per tonnes on strong speculative buying, backed by supply concerns.

* Oil rebounded from four-week lows on Thursday as a weaker dollar and cautious optimism about Ireland’s debt crisis rekindled interest for commodities, while a sharp crude inventory decline in the United States supported prices.

TOCOM rubber was expected to rise further on Friday after prices finished above another key resistance of 360 yen. However, profit-taking ahead of the weekend could cap the rise, dealers said.