Benchmark Tokyo rubber futures rose for a second day on Tuesday, rebounding to a one-week high, supported by the yen's decline against the US dollar and firmer Shanghai futures. The Tokyo Commodity Exchange rubber contract for March delivery finished 2.9 yen, or 1.6 percent, higher at 181.5 yen ($1.74) per kg, recovering the 180 yen mark and booking the highest close since October 18.
The October contract expired at 172.4 yen on Tuesday. The most-active rubber contract on the Shanghai futures exchange for January delivery climbed 135 yuan to finish at 13,985 yuan ($2,064.05) per tonne, after touching a high of 14,310 yuan earlier in the session. The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 146.0 US cents per kg, down 0.8 cent. "A softer yen supported the TOCOM even after Shanghai futures surrendered some of their earlier gains," said Satoru Yoshida, commodity analyst at Rakuten Securities.
