Benchmark Tokyo rubber futures came of early falls to extend gains into a second session on Monday, as Shanghai futures recovered from a near four-month trough. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, recovered as Shanghai futures turned higher after the head of a government research centre said the risk of a steep slide in China's economy has reduced.
Global oil prices pared early losses by Monday afternoon, also helping TOCOM, said a Tokyo-based broker. The Tokyo Commodity Exchange rubber contract for August delivery finished 2.2 yen higher at 263.9 yen ($2.30) per kg. Earlier in the session, the contract fell to a low of 255.6 yen, near a 2-1/2-month low hit on Friday. The most-active rubber contract on the Shanghai futures exchange for May delivery rose 145 yuan to finish at 17,820 yuan ($2,581) per tonne. The contract earlier hit a low of 17,150 yuan, the lowest since November 21, 2016. The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 199 US cents per kg, down 0.6 cents.