Benchmark Tokyo rubber futures rose on Friday, tracking strong Shanghai, on hopes of a trade deal between China and the United States. The Tokyo Commodity Exchange rubber contract for April delivery finished 1.1 yen ($0.0097) higher at 162.4 yen per kg. For the week, Tokyo rubber was down 3.9 yen.
TOCOM hit a 25-month low on Monday amid worries of a slowing economy in top buyer China. TOCOM's technically specified rubber (TSR) 20 futures contract for May delivery rose 1.1 yen to close at 147 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 115 yuan ($16.69) to finish at 11,370 yuan per tonne. The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 125.6 US cents per kg, up 1.1 cent.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, still posted a weekly drop due to rising supplies and weak demand. "The main reason for the rise today was signs of easing trade tension. If (Beijing and Washington) can reach a deal, it will be favourable for China's rubber tyre exports," said Hu Ding, analyst, China Futures Research.
"The technical rebound also supported prices," Hu said. It was reported on Friday that The United States was taking steps to resolve a trade spat with China.
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