Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, edged higher on Monday, amid hopes for more economic stimulus by China, the world’s top rubber buyer, and as investors looked for bargains.
* The benchmark Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery finished 1.3 yen higher, 0.6 percent, at 194.3 yen ($1.74) per kg, recovering from a 3-week low hit on Friday.
* “The market sentiment improved on growing hopes that there will be solutions for global issues such as slowing economy in China and the Sino-U.S. trade disputes,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
* “Also, some investors looked for bargains after a decline last week,” he added.
* The most-active rubber contract on the Shanghai futures exchange for May delivery fell 10 yuan to finish at 11,915 yuan ($1,776) per tonne.
* The U.S. dollar was quoted around 111.50 yen, compared with around 111.65 yen on Friday
* The Oil prices were mixed on Monday, weighed by concerns that an economic downturn may dent fuel consumption, but supported by supply cuts led by producer group OPEC as well as U.S. sanctions against Iran and Venezuela.
* Japan’s benchmark Nikkei stock average closed up 0.6 percent on Monday.
* TOCOM’s technically specified rubber (TSR) 20 futures contract for September delivery closed up 0.6 percent at 170.0 yen per kg
* The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 147.9 U.S. cents per kg, up 0.5 percent.
