SINGAPORE, Dec 10 (Reuters) – Tokyo rubber futures jumped as
much as 9.3 percent on Wednesday, bouncing back from a record
daily fall the previous day to track firmer oil and as a
tentative deal to rescue the U.S. auto industry buoyed the
equities markets.
* The White House and congressional Democrats reached
agreement in principle on a $15 billion proposal for bailing out
U.S. automakers, but while the accord covered key points, final
issues needed to be resolved. [ID:nL9471247]
* “The price is now more than half what it was six months
ago, so people don’t wish to sell from this point. I guess
there’s some short covering in the market,” said a dealer in
Tokyo.
* The benchmark rubber contract on the Tokyo Commodity
Exchange <0#JRU:> for May 2009 delivery settled at 112.0 yen per
kg ($1.21), up 7.0 yen, having fallen as low as 104.7 yen on
Tuesday — not far from last week’s 6-year low of 99.8 yen.
* “The market is oversold. That’s why we see this short
covering, but sentiment is so bearish because of the global
recession,” said another dealer in Tokyo, adding that the May
contract could find support around the psychological level of 100
yen.
* The benchmark contract posted its biggest daily fall ever
on Dec. 9 on jitters about the fate of the U.S. auto industry.
* Japan’s Nikkei average rose 3.2 percent to hit a one-month
closing high on Wednesday.

Source:  Reuters

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