TOKYO (April 17): Benchmark Tokyo rubber futures bounced back from a one-week low hit in the previous session to edge up on Tuesday, supported by technical buying, dealers said.
"Monday's loss in Tokyo rubber was smaller than that in Shanghai, which lent support to the TOCOM today," said Jiong Gu, an analyst at Yutaka Shoji Co.
The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery finished 1.0 yen higher at 180.2 yen (US$1.69) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery extended losses into a second day, finishing down 185 yuan at 11,090 yuan (US$1,766) per tonne.
The TOCOM futures, which set the tone for rubber prices in Southeast Asia, slid 3% on Monday, while Shanghai futures plunged more than 4% at one point the previous day.
"Since Shanghai found a resistance at 11,000 yuan today, the TOCOM was able to finish above a key 180 yen mark," Gu said.
"As Thailand resumes physical trading on Wednesday, there may be more short-covering in Shanghai futures as there will be more flexibility for investors to trade," he added.
Thai rubber markets were closed for the Songkran, or Thai New Year, holiday between April 12-17.
The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 136.4 US cents per kg, down 0.8 cent.
(US$1 = 106.9000 yen)
(US$1 = 6.2785 Chinese yuan)
Source: The Edge Markets