Tokyo futures hit 3-week high, may rise further (Aug 27)

BANGKOK, Aug 27 (Reuters) – Tokyo rubber futures jumped 3.7 percent to a three-week high on Monday, with charts indicating they could keep rising the next day, helped by climbing share prices and expectations of further economic stimulus in the United States and Europe.

The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery settled up 3.3 percent, or 7.3 yen, at 228.6 yen ($2.91) per kg, after earlier marking 229.5 yen, its highest since August 6.

“TOCOM prices gained on expectations that the U.S. and the EU would take further action to boost the global economy and that helped support commodity and share prices,” said a Bangkok-based trader.

The most-active January delivery contract on the Shanghai Futures Exchange advanced 775 yuan, or 3.6 percent, to finish at 22,545 yuan ($3,500) per tonne.

The front-month September rubber contract on Singapore’s SICOM exchange was last traded at 259.0 U.S. cents per kg, up 2.2 cents.

Sources also told Reuters that the European Central Bank was discussing yield-band targets under a new bond-buying programme to keep its strategy shielded and avoid speculators trying to cash in, as it tackles the euro zone debt crisis.

Dealers said TOCOM futures were expected to rise further on Tuesday after prices finished above a major support level at 225.0 yen, though profit-taking could limit any gains.

($1 = 78.6500 Japanese yen)

($1 = 6.3545 Chinese yuan)

(Reporting by Apornrath Phoonphongphiphat; Editing by Joseph Radford)

Source: http://sg.finance.yahoo.com/news/rubber-tokyo-futures-hit-3-083119134.html