Benchmark Tokyo rubber futures bounced back on Wednesday on the back of higher stock prices in Tokyo and Shanghai, but gains were capped as investors were hesitant to take big fresh positions ahead of the US Federal Reserve's policy decision. The Tokyo Commodity Exchange rubber contract for February delivery finished 1.2 yen, or 0.7 percent, higher at 170.8 yen ($1.42) per kg.
"Firmer equities prices in Japan and China were behind the rise in rubber prices," said Jiong Gu, an analyst at Yutaka Shoji Co. Japanese stocks rose on Wednesday as investors continued to cover short positions after strong US consumer spending buoyed sentiment, with automakers and electronics shares leading the gains. The most-active rubber contract on the Shanghai futures exchange for January delivery rose 110 yuan to finish at 11,730 yuan ($1,841.62) per tonne. The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 125.0 US cents per kg, up 0.7 cent.
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