BANGKOK: Tokyo rubber futures rose 2.8 percent on Wednesday, rebounding from a two-week low a day earlier on the back of rising oil prices, but gains were still capped by profit-taking, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for February delivery rose 9.8 yen to settle at 366.1 yen ($4.7)per kg.
The most-active Shanghai rubber contract for January delivery rose 925 yuan to finish at 33,835 yuan ($5,294) per tonne.
"TOCOM should rise further as firmer oil prices provided support, but profit-taking by small investors limited the rises," said a Bangkok-based dealer.
Brent crude rose above $113 a barrel for the second consecutive day on Wednesday, boosted by expectation of lower US crude stockpiles after a storm disrupted production in the Gulf of Mexico.
Dealers said they expected TOCOM rubber to rise further on Thursday to test the next resistance of 370 yen level after prices finished above a key psychological level of 365 yen.
Copyright Reuters, 2011
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