TOKYO: Benchmark Tokyo rubber futures ended up 0.5 percent on Wednesday, snapping a two-day decline, buoyed by better-than-expected Chinese factory activity data that eased worries over weak rubber demand from the world's top consumer.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, rose as much as 2.3 percent, but the gains were pared by the close due to weakness in Shanghai futures.
China's factory sector showed a marginal expansion, according to the flash HSBC/Markit Purchasing Managers' Index, which inched to a four-month high of 50.1 in February. A Reuters poll of economists had forecast a reading of 49.5.
The market was keenly awaiting the outcome of a meeting this week by producers, including Thailand, Indonesia and Malaysia, to discuss measures to support rubber prices.
"TOCOM got support from HSBC index," said a source with a Tokyo-based broker. "Today's rise may also have something to do with some expectation of some measure by the group to support prices."
The Tokyo Commodity Exchange rubber contract for August delivery finished 1 yen higher at 214.5 yen per kg.
The Shanghai futures exchange returned from a week-long holidays, with the most-active rubber contract for May delivery falling 10 yuan to finish at 13,880 yuan per tonne.
The front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 137.70 US cents per kg, down 1.9 cent.
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