Key TOCOM rubber futures recovered from a four-day decline on Tuesday as higher share prices in Asia encouraged investors to buy on dips. The benchmark contract had touched a two-week low in the previous session. There was some caution before China announces a series of economic data, including third-quarter gross domestic product, on Thursday, as Chinese corporate profits show scant sign of a second-half recovery.
The key Tokyo Commodity Exchange rubber contract for March delivery settled up 1.9 yen at 260 yen per kg in slow trade after moving in a narrow range of 258.3 to 260.7 yen. The benchmark contract on Monday fell as far as 256 yen, its lowest since September 28. The most active Shanghai rubber contract for January delivery rose 50 yuan to 25,215 yuan per tonne.
The front-month November rubber contract on the SICOM in Singapore was last traded at 294 US cents per kg, down 0.5 cents. "There's little market incentive except for an overnight rally in the New York stock market and a following stock market rally in Asia," said a trader at a Japanese commodity brokerage.