Tokyo Futures Rise On Oil Gains, Capped By Firm Yen

Key Tokyo rubber futures rose on Monday (January 31) on a rise in oil prices due to concerns that tensions in Egypt might spread across the Middle East, but a stronger yen helped to cap the gains.
The benchmark rubber  contract on the Tokyo Commodity Exchange for July delivery rose as much as 6.6 yen or 1.4 percent in early trade to 475.7 yen per kg, and was up 5.3 yen or 1.1 percent at 474.4 yen as of 0015 GMT.
The market fell 1.4 percent last week, posting its first weekly loss in a month. The benchmark contract hit a record peak of 484.9 yen last week.
On the Shanghai futures exchange, the most active rubber contract for May delivery rose as high as 40,945 yuan ($6,221) per tonne on Friday (January 28), just below a record peak of 41,200 yuan marked last week. The contract closed at 40,940 yuan per tonne on Friday (January 28), up from the previous close of 40,550 yuan. Volume stood at 610,376 lots.
Analysts said the market technically was looking bullish and supply concerns continued to underpin demand.
But the market also faced selling pressure as investors, wary of the recent rapid pace of price increases, may close positions in the near term, especially ahead of China's New Year holidays, when buying by the world's largest rubber consumer halts.
China begins the week-long Lunar New Year holiday on Feb. 2.
U.S. crude rose $1 to $90.34 a barrel on Monday (January 31) on concerns that unrest in Egypt could intensify and spread across the Middle East.
The U.S. dollar and the yen edged higher against the euro in early trade on Monday (January 31) as investors sought safer havens amid concerns over the simmering tensions in Egypt.
(Reuters, January 31, 2011)