Benchmark Tokyo rubber futures jumped on Thursday, tracking strong Shanghai, as the market remained optimistic over a potential trade deal between Beijing and Washington. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, were also supported by reports of stimulus measures on car consumption in China.
"The prices were mainly boosted by news from the consumption end. The Sino-US trade talks are also going well," said Pan Shengjie, an analyst with Galaxy Futures Co. Ltd. "On the upstream supply end, major producer are cutting output. Supply increase in February and March will be limited," Pan said.
The Tokyo Commodity Exchange rubber contract for July delivery finished 1.5 yen ($0.0135) higher at 184.6 yen per kg.
TOCOM's technically specified rubber (TSR) 20 futures contract for August delivery rose 3.3 yen to close at 157.4 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 180 yuan ($26.62) to finish at 11,785 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 135.1 US cents per kg, up 1.8 cent.
