Benchmark Tokyo rubber futures pared early losses to end down 0.2% on Monday, helped by firm Shanghai futures on the back of a Thai scheme to try to shore up prices via buying at above-market prices.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, hit a seven-year low of 144.5 yen on Tuesday amid plunging oil prices and worries over a slowing Chinese economy, but have since recovered 9%, helped by the Thai measure.
The Tokyo Commodity Exchange rubber contract for June delivery <0#2JRU:> finished 0.3 yen lower at 157.4 yen per kg, after falling more than 1% in morning trade under pressure from oil's fall to its lowest level since 2003 and a stronger yen.
"The firm Shanghai futures helped lend support to TOCOM, which was under pressure from oil's extended decline and a strong yen against the dollar," said a source with a Tokyo-based dealer.
The US dollar was quoted around 117.10 yen, compared with around 117.61 yen on Friday afternoon. A stronger yen makes Japanese currency-denominated assets more expensive for holders of other currencies.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 275 yuan to finish at 10,150 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 106.6 US cents per kg, down 0.8 US cent.
