TOKYO, June 18 (Reuters) – The most actively traded TOCOM rubber futures rose to a two-week high on Monday after pro-bailout parties won a narrow majority in Greek elections, easing fears the euro zone’s debt crisis could spiral out of control.
With around 97 percent of the vote counted, the Greek election looked set to deliver a government broadly committed to a 130 billion euro EU/IMF bailout, a result seen as crucial to European leaders’ efforts to hold the euro together.
Yen-denominated Tokyo rubber prices were also supported as the dollar rose to around 79.20 yen, compared with 78.65 yen in late trading in New York on Friday. [USD/]
The most-active Tokyo Commodity Exchange rubber contract for November delivery was up 2.9 percent at 254.9 yen per kg as of 0145 GMT.
The contract earlier rose to 257.4 yen, its highest since June 1 and up more than 10 percent from a 2-1/2 year low of 232.2 yen marked last week.
In Shanghai, the most active rubber contract for September delivery was up 475 yuan at 23,135 yuan per tonne.
But investors were loath to keep buying as borrowing costs in Spain and Italy remain high, underlining the seriousness of the euro zone’s problems.
They are also looking to a meeting this week by leaders from the group of 20 industrialized and developing nations, representing more than 80 percent of world economic output.
G20 leaders are expected to deliver pledges to stimulate growth while balancing those efforts against steps to rein in budget deficits at a meeting in Los Cabos, Mexico, on Monday and Tuesday.
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