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TOKYO: Japanese rubber futures closed more than 1% higher on Monday as the country's ruling party elected a new leader who has pledged to continue his predecessor's policies designed to boost the economy.

Osaka Exchange's (OSE) rubber contract for February delivery finished 2.4 yen, or 1.4%, higher at 179.1 yen per kg.

The rubber contract on the Shanghai futures exchange for January delivery rose 1.2% to finish at 12,335 yuan per tonne.

Japanese Chief Cabinet Secretary Yoshihide Suga, a longtime ally of outgoing Prime Minister Shinzo Abe, won the ruling party leadership election on Monday by a large majority, which all but ensures he becomes prime minister later this week.

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