Benchmark Tokyo rubber futures surged to a nine-day high on Wednesday, recovering from a 1-1/2-week low hit in the previous session, as investors looked for bargains amid support from stronger Shanghai futures and a rally in oil prices.
The Tokyo Commodity Exchange rubber contract for May delivery finished 3.3 yen, or 2 percent, higher at 164.7 yen ($1.45) per kg. The TOCOM benchmark, which sets the tone for rubber prices in Southeast Asia, reached as high as 165.6 yen, the highest since Dec. 3, earlier in the session.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 100 yuan to finish at 11,245 yuan ($1,633) per tonne.
TOCOM's technically specified rubber (TSR) 20 futures contract for June delivery also soared 2.1 percent to close at 146.4 yen per kg.
The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 123.8 US cents per kg, up 0.5 cent.
"With the TOCOM-approved rubber stocks declining, the market's tone has turned positive," a Tokyo-based dealer said, adding that the market became bullish from a technical point of view. Oil prices rose by around 1 percent on Wednesday amid a stock market rebound and on expectations that an OPEC-led output cut for 2019 would stabilise the supply-demand balance.
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