Benchmark Tokyo rubber futures surged 3 percent on Thursday, hitting a one-week high, as strong gains in crude oil prices after a dovish statement by the US Federal Reserve boosted risk appetite and outweighed the yen's gain.
Rubber tends to track overall commodity markets, especially oil. Higher crude oil boosts the price of synthetic rubber, a petroleum product, which helps bolster the price of natural rubber.
The Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery finished 5.1 yen, or 3.0 percent, higher at 175.6 yen ($1.57) per kg. The contract rose to a session-high of 177.0 yen, a price not hit since March 10.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 265 yuan to finish at 11,460 yuan ($1,765.30) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 127.5 US cents per kg, up 1.9 cent.
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