TOKYO: Benchmark Tokyo rubber futures shed early losses to end higher on Tuesday, following gains in Shanghai futures and supported by a softer yen.

The Tokyo Commodity Exchange (TOCOM) rubber contract for December delivery finished up 0.8 yen, or 0.4 percent, at 197.3 yen ($1.73) per kg, after touching a low of 194 yen earlier in the session.

The most-active rubber contract on the Shanghai futures exchange for September delivery rose 175 yuan to finish at 12,910 yuan ($1,897) per tonne.

The front-month rubber contract on Singapore’s SICOM exchange for August delivery last traded at 145.9 US cents per kg, up 0.1 cent.

The dollar advanced against a Japanese yen above 114.47 yen to the highest since mid-March, with investors awaiting comments from Federal Reserve Chair Janet Yellen for fresh cues on policy direction.

“Stronger Shanghai futures and yen’s decline in late trade lent support to the TOCOM,” said Hiroyuki Kikukawa, general manager of research at Nissan.

A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

“Still, an overall tone remains weak amid concerns over slowing auto sales in the United States and expectations that rubber producers such as Thailand, Indonesia and Malaysia will not come up with any effective measures to shore up prices,” Kikukawa said.—Reuters