Key Tokyo rubber futures rallied more than 4 percent to touch a 10-month high above 209 yen on Thursday, boosted by fund buying, while steady demand from tyre makers in the physical market was supportive. The key Tokyo Commodity Exchange rubber contract for January delivery settled up 8 yen or 4 percent at 209 yen per kg. The contract earlier rose as high 209.9 yen, the highest level for any benchmark since October 9.
Buying by tyre makers, including those in China, remains strong on any price fall, providing the market with solid support, traders said. The benchmark, which briefly broke above 200 yen last week, has consistently traded above the key psychological level since Tuesday, improving technical charts and prompting trend-following funds to buy.
Improved economic data suggesting that the global economy may be on the mend has also encouraged buying on hopes of a recovery in demand for the industrial commodity. The Federal Reserve said on Wednesday the US economy was showing signs of levelling out. But it kept its benchmark short-term interest rate near zero and said it would likely stay there for an extended period.
Comments
Comments are closed.