Benchmark Tokyo rubber futures surged to a 1-month high on Wednesday as sharp gains in Asian stock prices as well as Shanghai rubber futures prompted a flurry of short-covering while the yen's dip added further support, dealers said. The Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery finished 5.1 yen, or 3.3 percent, higher at 161.7 yen ($1.42) per kg. It touched a high of 161.9 yen, the highest since February 1, breaching the 160-yen mark for the first time in a month.
"The TOCOM prices were lifted as fears of further losses in crude oil prices have receded while sharp rises in stock markets and a selloff in the yen led investors to cover short positions," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 255 yuan to finish at 10,560 yuan ($1,612.14) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 117.3 US cents per kg, up 2.6 cent.