Tokyo futures hit 2-week high, but gains capped (June 18)

BANGKOK, June 18 (Reuters) – Tokyo rubber futures jumped more than 3 percent to a two-week high on Monday on easing fears about a Euro zone debt crisis after Greece’s election delivered a slim parliamentary majority to pro-bailout parties. But gains were capped by profit-taking, dealers said. The benchmark rubber contract on the Tokyo rubber futures for November delivery rose 7.8 yen to settle at 255.6 yen ($3.25) per kg.

It rose as high as 9.6 yen, or 3.8 percent, to an intra-day high of 257.4 yen, the highest since June 1.

The most-active rubber contract on Shanghai rubber exchange was up 290 yuan to finish at 23,210 yuan ($3,600)per tonne.

The front-month July rubber contract on Singapore’s SICOM exchange was last traded at 298 U.S. cents per kg, up 2.5 cents.

“There was a good sign from the Euro zone after Greece’s election. At least, things will not get worse and that helped support rubber as well. But, there was profit-taking that limited the rise,” said a Bangkok-based trader.

Greece’s centre-right New Democracy party will try to form a coalition with other parties backing the international bailout after a narrow election victory over the left that eased fears of sudden exit form the EU.

European Commission spokesman Amadeu Altaf said he expected a positive reaction on Spanish and Italian equity and bond markets after the Greek election.

Dealers said TOCOM prices could rise further on Tuesday on the back of a follow-through buying force after prices broke a major resistance level of 255 yen per kg.

($1 = 78.7300 yen)

($1 = 6.3651 yuan)

(Reporting by Apornrath Phoonphongphiphat; Editing by Robert Birsel)