Tuesday, March 1, 2011

Tokyo futures up 2.3 pct on firmer oil, stocks

BANGKOK, March 1 - Tokyo rubber futures rose 2.3 percent to near a one-week high on Tuesday on strong oil prices and a recovery stock markets, but concerns of unrest in Libya added downward pressure, dealers said.

* The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for August delivery rose 10.7 yen to settle at 477.1 yen per kg. It rose as high as 484.1 yen per kg, the highest since Feb 24.

* The most active Shanghai rubber contract for May delivery also rose 50 yuan to settle at 39,365 yuan per tonne.

* Japan's Nikkei average clawed back towards 10-month highs and rose 1.2 percent on Tuesday as foreign investors piled into Japanese stocks on a lower inflation risk.[ID:nTOE72004X]

* Brent crude rose above $112 a barrel on Tuesday as continued unrest in the Middle East and North Africa threatened to further reduce crude supplies even as Saudi Arabia ramped up output to cover Libyan exports. [O/R]

* TOCOM rubber were expected to rise further to test the next resistance of 480 yen per kg on Wednesday after prices finished above a key psychological support level of 475 yen per kg, dealers said.

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