Asian rubber prices continued their winning streak Friday, closing higher after being guided by a rise in Shanghai rubber futures and a weaker yen.
Stronger rubber demand from China, the world's second-biggest buyer, has improved the mood of the rubber market, said a Tokyo-based trader."The increase in imports is suggestive of a pick-up in domestic demand, putting China back on track," the trader said.
Additionally, rubber prices benefited from a strengthened U.S. dollar against the Japanese yen. A cheaper yen makes Japan's exports competitive.
February Tokyo futures ended up 0.7 yen at Y158.9($1.55) a kilogram.
Asian Rubber Future Sep 09 Change from previous close
Tocom Feb RSS3 Y158.9/Kg Up Y0.7
Shanghai Jan SCR5 CNY12,780/Ton Up CNY85
Sicom Oct RSS3 159.0 US cents/Kg Up 0.5 US cents/Kg
Sicom Oct TSR20 131.4 US cents/Kg Unchanged
USS Sep THB50.58-THB50.73/Kg THB50.45-THB50.80/Kg
