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BANGKOK, Feb 20 (Reuters) – Tokyo rubber futures jumped 3 percent to a five-month high on Monday on speculative buying supported by China’s easing monetary policy and the prospect of a second Greek bailout, but gains were still capped by profit-taking, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange <0#JRU:> for July delivery rose 8.7 yen to settle at 326.8 yen ($4.12)per kg.
It jumped as much as 3 percent to an intra-day high of 328.1 yen, the highest since Sept. 26.
“Good news from China and Europe help support rubber futures, while higher oil prices provided a additional support,” one dealer said.
China’s central bank on Saturday cut its reserve requirement ratio (RRR) — the amount of cash banks must hold in reserves — boosting lending capacity by an estimated 350-400 billion yuan ($55.6-63.5 billion). [ID:nL4E8DJ09C]
Euro zone finance ministers are expected to approve a 130 billion euro rescue programme for embattled Greece at a meeting on Monday. [ID:nL5E8DJ0BT]
Brent crude futures rose on Monday to above $121 a barrel, the highest in eight months, as Iran cut its exports to Britain and France, months ahead of a European Union embargo. Oil prices also got a lift from policy easing by China and hopes for the Greek bailout. [O/R]
Dealers said TOCOM prices were expected to rise further after prices broke above a key psychological resistance of 320 yen. However, upside was likely to be capped by profit-taking.
($1 = 79.3600 Japanese yen)
Source: Reuters