Benchmark Tokyo rubber futures soared on Wednesday as traders covered short positions when the contract hit a four-month low in the previous session, while Shanghai futures witnessed a strong start after a two-day holiday.
The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery finished up 14.0 yen, or 5.9 percent, at 250.7 yen ($2.26) per kg, marking the biggest one-day leap since Jan. 30.
"Investors unwound short positions after the TOCOM dropped to 231 yen in the previous day, and as Shanghai resumed trading with a positive tone," said Jiong Gu, analyst, Yutaka Shoji Co.
The most-active rubber contract on the Shanghai futures exchange for September delivery jumped 540 yuan to finish at 16,970 yuan ($2,461) per tonne.
Chinese financial markets, including commodity futures exchanges, were closed on April 3 and April 4 for the Ching Ming Festival holiday.
The dollar edged down 0.1 percent to 110.63 yen, well below last Friday's 10-day peak of 112.19 yen, as concerns over a North Korean missile test worsened sentiment ahead of the summit between the U.S. and Chinese leaders.
"Some investors are anxious about the meeting's outcome, but I think it will bring no surprises," Gu added.
The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 184.7 U.S. cents per kg, up 4.8 cents.
($1 = 110.9300 yen)
