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TOKYO: Japanese rubber futures rose on Tuesday, rebounding from an early loss, on the back of a rally in Shanghai market and as strong Tokyo equities helped boost risk appetite among investors.

Osaka Exchange’s (OSE) rubber contract for February delivery finished 2.6 yen, or 1.3%, higher at 203.9 yen ($1.9) per kg, after falling to 199.9 yen earlier in the session.

The rubber contract on the Shanghai futures exchange for January delivery jumped 245 yuan to finish at 13,780 yuan ($2,139) per tonne, marking its highest close in a week.

Japan’s Nikkei closed at a more than 31-year high on Tuesday, led by cyclical stocks tracking overnight Wall Street gains, while progress in domestic vaccine rollouts raised hopes for an economic reopening.

The OSE’s recovery comes despite persistent worries over slow automobile production worldwide due to a chip shortage.

The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 164.2 US cents per kg, up 1.7%.

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