Key TOCOM rubber futures ended up 0.5 percent on Thursday after a late afternoon surge in Chinese stocks lifted sentiment in the region, but worries about the slowing global economy and sluggish car demand capped gains. The key Tokyo Commodity Exchange rubber contract for March delivery settled up 1.2 yen at 254.6 yen per kg after hitting an intraday low of 249 yen, the lowest since September 14.
"A rise in the Shanghai market after strong data in China encouraged investors, helping to turn the market," said Toshitaka Tazawa, analyst at trading company Fujitomi Co. "But a further gain is unlikely next week, given the global economic problems and sluggish car demand." The Shanghai rubber market moved near one-week high in the intraday session. The most active contract for January delivery closed up 1 percent at 24,080 yuan per tonne, after rising as high as 24,440 yuan, the highest since September 19.
The front-month October rubber contract on the SICOM in Singapore was last traded at 279 US cents per kg, down 3.5 cents. China's Shanghai Composite jumped as much as 3.2 percent in the afternoon session, with traders citing speculation that authorities will take steps to prop up the stock markets.
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