Benchmark Tokyo rubber futures rallied for a third day on Thursday, hitting a 5-1/2-week high, buoyed by technical buying and short-covering on the back of strong market momentum reflecting firmer Tokyo equities and a weaker yen, dealers said. The Tokyo Commodity Exchange rubber contract for August delivery finished 3.0 yen, or 1.9 percent, higher at 164.7 yen ($1.44) per kg. It earlier hit a high of 165.1 yen, the highest since January 25 when the benchmark scored the highest this year.
"Investors' risk appetite has grown, helped by a strong market momentum, especially after the benchmark cleared a technical ceiling of 160 yen on Tuesday," a Tokyo-based dealer, who declined to be named, said. The most-active rubber contract on the Shanghai futures exchange for May delivery rose 165 yuan to finish at 10,675 yuan ($1,631.66) per tonne. The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 122.0 US cents per kg, up 3.6 cent. Japanese stocks rose to 3-1/2-week highs on Thursday as risk appetite improved following the release of upbeat data on US jobs and a rally in oil and other commodities, which burnished sentiment globally.
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