TOKYO (Oct 14): Benchmark Tokyo rubber futures rose to a two-week high on Tuesday after an earlier rally in Shanghai prices on strong trade data and relaxed lending rules for home buyers was felt in the Japan market.
Tokyo Commodity Exchange (TOCOM) futures, which were closed on Monday due to a Japanese national holiday, gained after China export data in September beat forecasts the previous day to ease some fears of a sharp downturn in the world's second largest economy.
"TOCOM just followed the Shanghai jump from yesterday," said Jiong Gu, an analyst at Yutaka Shoji Co in Tokyo, adding there was no fresh news impacting the Tokyo market.
The TOCOM contract for March delivery <0#2JRU:> finished at 184.2 yen per kg, 5.5 yen higher then Friday's close. It had earlier climbed to as high as 184.9 yen, its steepest intra-day level since Sept. 30.
The move came after Shanghai futures finished nearly 2 percent higher on Monday. The most-active rubber contract on the Shanghai futures exchange for January delivery rose 40 yuan to finish at 12,650 yuan per tonne on Tuesday.
Gu said the next resistance level for TOCOM futures will be around 186.5 yen, and if it goes above that, the contract could rise to the 190-200 yen range.
But TOCOM gains were limited after Japan's Nikkei share average fell more than 2 percent to a new two-month low on Tuesday as heightened concerns about the health of the world economy unnerved investors.
The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 148.0 U.S. cents per kg, up 1.8 cents.