Key Tokyo rubber futures closed up nearly 2 percent on Thursday, maintaining momentum on recent buying by China in the physical market and resilience in other commodities prices. The key Tokyo Commodity Exchange rubber contract for July delivery closed at 140.7 yen per kg, up 2.6 yen or 1.9 percent from the previous close, after moving between 138.6 yen and 141.8 yen.
The contract had rebounded on Wednesday, partly fuelled by short-covering after hitting a five-week low of 130.9 yen the previous day. US oil was little changed after settling in New York near $40 a barrel. Oil stayed resilient despite falls in stock markets and a government report showing a larger-than-expected build in US crude inventories.
The dollar was almost flat at 89.34 yen. "Given that the dollar/yen rate is glued to its recent range, the rubber market is looking for clues from the direction in Shanghai," said a manager at a Tokyo-based commodities brokerage.