TOKYO: Benchmark Tokyo rubber futures rose for a third session in light trade on Wednesday as investors awaited the outcome of the U.S. Federal Reserve's two-day policy meeting amid expectations it would maintain low rates.
The Tokyo Commodity Exchange (TOCOM) rubber contract for February delivery climbed 1.5 yen to settle at 192.9 yen ($1.7989) per kg, the highest close since Sept. 8.
"The benchmark extended gains amid quiet trade as many players focus on the Fed policy meeting's result," said Jiong Gu, analyst at Yutaka Shoji Co.
The Fed's Open Market Committee (FOMC) will conclude its regular two-day policy meeting later on Wednesday and is likely to discuss the timing of its first rate hike. Policymakers will also release fresh economic and interest-rate projections, extending their forecasts through 2017.
Dealers said commodities were also boosted by reports that the People's Bank of China would provide 500 billion yuan ($81.43 billion) in short-term funding to the country's top five banks. Copper chalked up its biggest gain in almost a month.
Crude rubber inventories at Japanese ports stood at 15,970 tonnes as of Aug. 31, down 5.5 percent from 10 days earlier, data from the Rubber Trade Association of Japan showed on Wednesday.
"But the market did not react to the latest inventory data as investors worry more about the weakening demand in China," Yutaka Shoji's Gu said.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 5 yuan to finish at 13,580 yuan ($2,211) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for October delivery was last traded at 154.30 U.S. cents per kg, up 0.30 cent.
