Tokyo rubber futures jump

04 Sep, 2012

Tokyo rubber futures jumped almost 5 percent to a one-week high on Monday on hopes for more economic stimulus by the US Federal Reserve, but weak Chinese economic data and a drop in oil prices weighed, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for February delivery rose 10 yen to settle at 227.8 yen ($2.91) per kg. It rose as much as 10.7 yen to an intra-day high of 228.5 yen, the highest since August 28.
The most-active rubber contract on Shanghai futures exchange for January delivery was up 620 yuan, or 2.9 percent, to finish at 22,110 yuan ($3,500) per tonne. The front-month rubber contract on Singapore's SICOM exchange for October delivery was last traded at $2.62 per kg, up 9 cents.
"Technical sentiment on TOCOM improved, but trading volume was thin as players were still cautious after seeing weak Chinese data and weak oil prices," said a Bangkok-based trader. Federal Reserve Chairman Ben Bernanke on Friday left the door wide open to a further easing of monetary policy, saying the stagnation in the US labour market was a "grave concern", but he stopped short of providing a clear signal of imminent action.

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