Tokyo rubber futures closed on Friday at near 15-month highs supported by firm oil prices, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange ended 1.4 yen higher at 276.3 ($3.02) yen/kg after rising earlier to an intra-day high 278.9, the highest since September 2008.
Oil rose nearly 2 percent to top $78 a barrel for the first time in three weeks on Thursday, buoyed by economic optimism that sent Wall Street to a 2009 high. At 0717 GMT, US crude was at $77.75 a barrel. Higher oil prices usually make an alternative petrochemical synthetic rubber expensive and encourages the use of natural rubber.
TOCOM sentiment has improved after prices topped 270 yen last week, but the rise has also made it susceptible to profit-taking, dealers said. TOCOM prices were expected to rise higher next week, with 280 yen seen as a key resistance, dealers said.
ASIA PHYSICAL RUBBER Asian physical rubber prices were higher on Friday, tracking rising futures contract prices on the Tokyo Commodity Exchange (TOCOM). However, rising supply still weighed, traders said.
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