BANGKOK, Sept 19 (Reuters) – Tokyo rubber futures climbed to a three-and-a-half month high on Wednesday, buoyed by hopes that demand would rise after the Bank of Japan eased monetary policy, dealers said.
It rose to an intra-day high of 263.6 yen, the highest since June 1, before climbing down as some profit taking set in.
“There was some speculative buying after the BOJ relaxed monetary policy as market players expected demand to rise. But, there were small players who took profit and that limited the gains,” a Bangkok-based trader said.
The Bank of Japan eased monetary policy on Wednesday by boosting its asset purchase programme, as prospects of a near-term recovery in the world’s third largest economy faded due to weakening exports and fall-out from a territorial dispute with China.
Dealers said they expected TOCOM prices to rise further on Thursday as technical sentiment improved after prices finished at a major support of 260 yen level.
The most-active rubber contract on Shanghai futures exchange for January delivery rose 230 yuan to finish at 24,535 yuan ($3,900) per tonne.
The front-month October rubber contract on Singapore’s SICOM exchange was last traded at $2.89 per kg, up 0.2 cent.
($1 = 78.6100 Japanese yen)
($1 = 6.3189 Chinese yuan)
(Reporting by Apornrath Phoonphongphiphat; Editing by Himani Sarkar)
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