Tokyo rubber hits six-month high

Tokyo rubber futures rose to their strongest in six months on Tuesday as concerns about limited supply in Southeast Asia helped the market defy pressure from a falling stock market and rising yen. The most active Tokyo Commodity Exchange rubber contract for March delivery rose as high as 332.5 yen a kg, its strongest since April, before settling 5.5 yen higher at 328.2 yen.
Japanese markets were shut on Monday for a national holiday. "I think the market is mainly pushed up by the funds. Money is flowing into commodities, and it's not only in rubber," said a dealer in Thailand's southern city of Hat Yai. Shanghai rubber futures, which often influence movements on TOCOM and the physical market, were at four-year highs. The most active March contract rose as high as 29,565 yuan a tonne - its strongest since May 2006.