Benchmark Tokyo rubber futures hit their highest level in nearly two weeks in thin trading on Thursday despite a higher yen, due to support from strong trade data from China that eased concerns about the global economic outlook.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for January delivery rose 4 percent, or 9.8 yen, to settle at 256.2 yen ($2.65) per kg. Volumes were thin ahead of the seasonal "obon" summer holidays next week.
The contract jumped as much as 5 percent to an intraday high of 258.8 yen, the highest since 258.9 hit on July 26, after Chinese trade data showed exports rose 5.1 percent in July from a year earlier, a smart turnaround from their first fall in 17 months in June. Analysts had expected a 3 percent rise.
The gains came though the yen reached a seven-week peak of 96.165 per dollar. That usually makes Japanese currency-denominated assets more expensive when purchased in other currencies.
"Despite the strong yen, some funds looked to have been buying when sellers were mostly absent due in part to Singapore's holiday," said a Tokyo-based broker.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 735 yuan, or 4 percent, to finish at 19,070 yuan ($3,100) per tonne.
Japan's current account surplus dropped 20.3 percent year-on-year in June, finance ministry data showed on Thursday, as rising energy imports weigh on the country's balance of payments.
The front-month rubber contract on Singapore's SICOM exchange for September delivery was untraded due to a public holiday.
