Tocom rubber futures settle 2.4% higher, tracking strong gains in equities and crude-oil prices, as risk sentiment recovers on better-than-market-expected U.S. housing starts data and a solid Spanish bond auction. A trading participant says funds have been taking new long positions on Tocom. Many traders expect Tocom to continue moving in a wide Y260-Y280/kg range, taking external cues ahead of the year-end holidays. Benchmark May rubber settles Y6.6 higher at Y277.9/kg, off the intraday high of Y279.7/kg.

Source: Dow Jones

BANGKOK, Dec 20 (Reuters) – Tokyo rubber futures rose modestly on Tuesday, supported by firm oil prices, but concern about Europe’s debt crisis weighed on the market, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for May delivery rose 4.5 yen, or 1.7 percent, to settle at 271.3 yen ($3.48) per kg.
Brent crude futures rose above $104 on Tuesday, buoyed by the risk of supply being disrupted from Central Asian producer Kazakhstan. [O/R]
Comments from Mario Draghi, president of the European Central Bank, depressed sentiment in financial markets after he said the economic outlook contained substantial risks and 2012 would be a difficult year. [ID:nL6E7NJ427]
Dealers said TOCOM prices could rise further on Wednesday after prices finished above major resistace at 270 yen per kg, although the European concerns would hold the market down still.
($1 = 77.9400 Japanese yen)

Source: Reuters