Benchmark Tokyo rubber futures rose for a fourth straight session on Wednesday, finishing within striking distance of the psychologically important 200-yen level, as traders covered positions as the contract continued to rise from last week's depths. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, sank to their lowest level in more than four years earlier last week as concerns over high inventories hit sentiment.
The Tokyo Commodity Exchange rubber contract for November delivery ended 3.6 yen higher at 199.9 yen per kg on Wednesday, after falling to as much as 190.3 yen last Thursday. "The contract has been oversold up until now, so as the prices gained, people came into the market to cover positions," said a Tokyo-based trader on condition of anonymity. Adding to sentiment for the contract, Japanese shares bounced off a one-week low on Wednesday on news that Japan will retain its status as the only developed market in the region in MSCI stock indexes.
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