Tokyo rubber futures rose 3.6 percent on Tuesday, rebounding from a five-month low the previous day on the back of strength in other commodities, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery rose 9.2 yen, or 3.6 percent, to settle at 262.0 yen ($2.83) per kg.
"Rises in other commodities, especially gold and oil, have helped improve TOCOM sentiment," one dealer said, adding prices could rise further now the benchmark had held above 260 yen. 270 yen is seen as a resistance level now, dealers said.
US crude oil futures rose more than $1 a barrel on Tuesday, rebounding strongly after hitting a five-month low the previous day on concern about the health of the global economy. Gold edged up on Tuesday but held around $20 below a record high struck last week, while another increase in holdings in the world's largest gold-backed ETF showed investors were keeping faith with the metal.