TOCOM ends up 2.4 pct on soft yen

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TOKYO (Nov 19): Benchmark Tokyo rubber futures ended up 2.4 percent on Wednesday, getting support from the yen's decline to a seven-year low against the dollar and firm Shanghai futures.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, extended gains in the afternoon as the dollar firmed further.

The dollar rose to as high as 117.39 yen as Japanese Prime Minister Shinzo Abe's decision to postpone a sales tax rise was read as supportive of risk sentiment.

Rubber producers in Asia are to meet on Thursday to look at more measures to push up prices, which are not far above five-year lows, including restrictions on supply to global markets.

The Tokyo Commodity Exchange rubber contract for April delivery finished 4.8 yen higher at 205.0 yen($1.75) per kg.

The benchmark contract rose more than 3 percent to an intraday high of 206.4 yen, off a three-and-a-half month high of 208 yen hit on Monday.

"It's a random trade based on dollar-yen movements," said a Tokyo-based dealer, who added that there was no change in the fundamentals of supply overcapacity.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 155 yuan to finish at 12,715 yuan ($2,077) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 154.00 U.S. cents per kg, up 0.3 cent. ($1 = 6.1206 Chinese yuan) ($1 = 117.2500 Japanese yen)