Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, hit a four-week high on optimism over a potential US-Sino trade deal, while a rally in Tokyo stock market and stronger oil prices boosted risk appetite.
The benchmark TOCOM rubber contract for July delivery ended up 4.5 yen, or 2.5 percent, at 187.0 yen ($1.69) per kg, marking the highest since Jan. 22. The most-active rubber contract on the Shanghai futures exchange for May delivery rose 175 yuan to finish at 11,815 yuan ($1,746) per tonne. TOCOM's technically specified rubber (TSR) 20 futures contract for August delivery closed 2.8 percent higher at 159.4 yen per kg
The front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 135.7 US cents per kg, up 0.7 percent. "On top of hopes for the trade pact and higher Nikkei, rising physical prices at Thailand also prompted buying in the TOCOM," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
