Tokyo Commodity Exchange (TOCOM) futures hit a nearly 4-week high on Monday as China's trade data and stronger equities helped boost investors' risk appetite, but gains were capped as Shanghai futures surrendered earlier gains.
The benchmark Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery finished 0.5 yen, or 0.3 percent, higher at 192.8 yen ($1.72) per kg, after hitting the highest since March 19 of 195.7 yen earlier in the session. The most-active rubber contract on the Shanghai futures exchange for September delivery slid 45 yuan to finish at 11,840 yuan ($1,766) per tonne, after rising to as high as 12,120 yuan or a 3-week high.
TOCOM's technically specified rubber (TSR) 20 futures contract for October delivery closed at 173.0 yen per kg, unchanged from the previous session. The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 154.0 US cents per kg, down 0.8 percent.
"The TOCOM got a boost from China's strong exports data, but Japanese investors were cautious as they were worried that tyre demand may fall if Japan-US trade talks lead to any cut in car exports from Japan," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
