Key Tokyo rubber futures inched up on Tuesday, reversing earlier losses as oil recovered and Shanghai futures held steady, but the yen's persistent strength capped gains. The key Tokyo Commodity Exchange rubber contract for February delivery rose 2.3 yen or 0.8 percent to 297.1 yen per kg. The price could hover in the range of 290 yen and 300 yen as there are few trading factors seen affecting the market, a trader said.
Oil was steady on Tuesday near one-month highs above $77 ahead of inventory reports expected to show crude stock draws as the shutdown of the biggest Canada-US pipeline enters a fifth day. The dollar extended losses versus the yen on Tuesday, falling to a 15-year low as the market looked to test Japanese officials' resolve over the strength of its currency after a ruling party leadership vote.
Japanese Prime Minister Naoto Kan was set to keep his job after winning the ruling party, but a strong showing by his rival among party parliamentarians could weaken his clout, complicating efforts to rein in huge public debt.