TOKYO, July 15 (Reuters) – Tokyo rubber futures rose nearly 3 percent to a one-week high above 160 yen on Wednesday, supported by firmer crude oil prices.
* The key Tokyo Commodity Exchange rubber contract for December delivery <0#JRU:> settled at 160.7 yen per kg, up 3.9 yen or 2.5 percent from the previous settlement. It rose as high as 161.0 yen at one stage, the highest for a benchmark in one week.
* The market could break out of the current bearish technical charts if Thursday’s settlement is above 160 yen, a level the market has failed to sustain due to weak demand for tyres as automakers have cut output due to the economic slump.
* “The market broke above the 25-day moving average resistance today, and if it settles above 160 yen tomorrow, the technical charts will turn bullish,” said Masato Miyanaga, senior adviser at H.S. Futures.
* “Oil prices are rising and the dollar is holding up against the yen, so external factors are also supportive for rubber,” he said, adding that if the market enters an uptrend, the near-term target will be a recent high around 172 yen hit a month ago.
* U.S. oil prices rose more than $1 a barrel above $60 on Wednesday, buoyed by positive industry data that showed crude oil and gasoline stockpiles fell last week. [O/R]
* The yen maintained a soft tone on Wednesday, caught in tight ranges after falling the previous day when upbeat results from Goldman Sachs and Intel boosted investor appetite for stocks and modest hopes for a recovery. [USD/]
* A weaker yen boosts market sentiment as it enhances the dollar value of yen-based futures.

Source: Reuters

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