Tokyo rubber futures jumped to 4-month high on Tuesday, buoyed by positive US manufacturing data which investors said boded well for future demand. The benchmark rubber contract on the Tokyo Commodity Exchange for March delivery rose 9.9 yen to settle at 270.4 yen per kg. It rose as much as 12 yen, or 4.6 percent, to an intra-day high of 272.5 yen, the highest since May 30.
The front-month November rubber contract on Singapore's SICOM exchange was last traded at $3.08 cents per kg, up 10 cents. "The US data spurred buying as players expected rubber demand to rise in the same direction. However, there were small players that took profit and that prevent prices from rising further," said a Bangkok-based trader. Dealers said TOCOM rubber could rise further on Wednesday after prices finished above a major resistance of 270 yen.
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