Tokyo rubber futures inched up on Thursday after Japanese shares and some commodities firmed on expectations the European Central Bank will take policy action after the U.S. Federal Reserve dashed hopes of any imminent stimulus. The most active contract on the Tokyo Commodity Exchange, January 2013, ended 1.7 yen a kg higher at 231 yen after trading as low as 227.9 yen.
The contract plunged to a 2-1/2-year low at 222.4 yen last week on worries about the debt crisis in Europe and slowing demand from top consumer China. "I think there's a long consolidation at the lows at around 220 yen. So when it comes to around 220 yen, the market rebounds although it still can't break the resistance of 250 yen," said a dealer in Kuala Lumpur. "But it looks like the situation in Europe has stabilised a bit." The most-active rubber contract on the Shanghai futures exchange for January delivery ended at 22,605 yuan a tonne ($3,554), up from 22,500 yuan on Wednesday. The front-month September rubber contract on Singapore's SICOM exchange was last traded at 279.80 U.S. cents per kg, down 80 cents.