Tokyo rubber futures ended slightly higher on Friday on the back of steadier oil prices but the market was still held back by uncertainty about the European debt crisis, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for March delivery rose 0.7 yen to settle at 282.2 yen ($3.6) per kg. The most active rubber contract on the Shanghai futures exchange fell 730 yuan to finish at 24,715 yuan ($3,870) per tonne.
"A recovery in oil prices encouraged players to buy back contracts, but the EU debt stalemate still weighed on the market as no one knows what the solution will be," one dealer said. Brent crude held steady above $109 after recovering the previous day when the market was optimistic about a solution to the debt crisis, which might stem any slowdown in oil demand.
France and Germany said European leaders would examine in detail a global solution to the crisis on Sunday and aim to adopt the plan on Wednesday at the latest. Dealers said they expected TOCOM rubber to rise further next week as firm oil prices should lend support, especially as prices had found strong support at 280 yen.
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