Tokyo Futures Rise On Weaker Yen But Caution May Cap

Key Tokyo rubber futures rose on Wednesday (Apr 6) on a weaker yen and a rise in oil and other commodities the day before, but the market may be capped as investors grow cautious about the recent rapid pace of price increases.
FUNDAMENTALS
The key Tokyo Commodity Exchange rubber contract for September delivery was up 3.5 yen or 0.8 percent at 461.6 yen per kg as of 0026 GMT.
The contract rose as high as 464.9 yen earlier, just below Tuesday's (Apr 5) high of 466.8 yen, its highest since March 7.
The Shanghai rubber market will reopen after a two-day holiday earlier this week. The most active Shanghai rubber contract for September delivery fell 260 yuan to finish at 34,635 yuan ($5,288) per tonne on Friday (Apr 8).
U.S. crude futures eased on Wednesday after falling in choppy trade the day before ahead of weekly inventory reports, hemmed in by the prospect that the reports would show crude stocks rose again last week. Brent crude jumped to a 2-1/2 year peak above $122 a barrel on Tuesday (Apr 5).
The yen extended its decline early Asian trade on Wednesday (Apr 6), hitting fresh 11-month lows against the euro and the Australian dollar and looking to deepen its losses as technical support levels threaten to give way.
(Reuters, April 6, 2011)