Benchmark Tokyo rubber futures bounced back on Monday, snapping a four-session losing streak and recovering from a four-month low hit on Friday, as investors looked for bargains and on the back of firmer Shanghai futures, dealers said. The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery finished 5.2 yen, or 3.5 percent, higher at 153.2 yen ($1.45) per kg.
The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, fell for the seventh week in a row last week, marking their longest losing streak in more than two years. "The market was supported by higher Shanghai market, while short-covering also lent support," said Toshitaka Tazawa, an analyst with Fujitomi Co, adding that there was little reaction to a plunge in Tokyo equities and the higher yen.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 85 yuan to finish at 10,535 yuan ($1,600.24) per tonne. Chinese markets were closed on Thursday and Friday for the Dragon Boat festival holiday. The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 125.2 US cents per kg, up 1.4 cent.
