Tokyo rubber futures ended 1.4 percent higher on Tuesday as fears of a drop in supply in producing countries spurred buying, but gains were capped by profit-taking, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery rose 4.7 yen, or 1.4 percent, to settle at 331.9 yen ($4.12) per kg.
It rose to an intra-day high of 334.6 yen before profit-taking set in. The most active Shanghai rubber futures contract for May delivery ended 635 yuan higher to settle at 32,055 yuan per tonne. Tokyo rubber futures are expected to hit a two-year high by the end of November, pushed up by strong demand from tyre makers, a Reuters poll showed.