Benchmark Tokyo rubber futures rose to a two and a half month high on Tuesday, as investors remained positive over the impact of the latest round of stimulus announced by the US Federal Reserve last week. The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for February delivery gained 1.6 yen, or 0.6 percent, to settle at 256.2 yen ($3.25) per kg. It earlier climbed as far as 259.5, its highest level since July 4.
The most-active rubber contract on the Shanghai Futures Exchange for January delivery settled at 24,305 yuan ($3,800), versus 24,385 yuan on Monday. The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 290.2 US cents per kg, down 1 cent.
"Stocks and commodities are being supported by the new policies of putting lots more funds into the market," said a Tokyo-based rubber trader. Thailand's government on Tuesday approved a 30 billion baht ($974.34 million) budget for intervening in rubber markets, though traders said the step would have a minimal effect compared to the impact from the Fed.
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