Benchmark Tokyo rubber futures rose on Tuesday, snapping a five-session losing streak, helped by a stronger Tokyo stock market and a fall in the yen against the US dollar after Japan warned it was prepared to step in to weaken the currency.
The Tokyo Commodity Exchange (TOCOM) rubber contract for October delivery <0#2JRU:> finished 1.0 yen, or 0.6%, higher at 181.7 yen (US$1.66) per kg.
Japan's Nikkei share average rose more than 2% to 1½-week highs on Tuesday after Finance Minister Taro Aso said Tokyo will intervene if the yen's "one-sided" rise persists.
The yen fell sharply to its lowest in almost two weeks against the dollar following a slew of intervention warnings by Japan. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
Firmer oil prices also led investors to look for bargains after the TOCOM fell for a fifth straight session on Monday, dealers said.
Oil rose, driven by supply disruptions in Canada and elsewhere that have knocked out 2.5 million barrels of daily production and temporarily eclipsed concern over high global inventories and a looming surplus of refined products.
TOCOM futures, which set the tone for tyre rubber prices in southeast Asia, fell to a fresh 4-week low on Monday as disappointing China trade data sent Shanghai futures plunging.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 115 yuan to finish at 11,895 yuan (US$1,825.95) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 145.6 US cents per kg, unchanged from the previous day.
