The price of rubber for January delivery in 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 2.67% or 5.60 points at 215.40 yen per kilogram (kg).
Previously, rubber prices opened with a 0.57% increase at 211 yen per kg position, after trading on Tuesday (8/8) ended down 1.04% at position 209.80.
The rebound in rubber prices today came amid fears that rains in rubber plantations will hamper supply.
"Some investors took action following speculation that supplies could be disrupted due to weather factors," said Gu Jiong, an analyst with Yutaka Shoji, as quoted by Bloomberg.
The buying step in Thailand also supports rubber prices. Thailand is reportedly approving loans for latex producers to boost local demand.
Authorities say Thailand's rubber price could rise to 70 baht per kg this year.
Meanwhile, the yen today continued to appreciate 0.34%, or 0.38 points, to 109.95 yen per US dollar at 14.38 Western Indonesia Time, after on Tuesday closed up 0.37% at 110.33.
The strength of the yen follows growing tensions surrounding North Korea's nuclear program. The attractiveness of the yen as a safe haven asset tends to rise amid rising global tensions that drove investors away from riskier assets.
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