Tokyo futures rise 0.4 pct, further gains limited

TOKYO, Aug 21 (Reuters) - Benchmark Tokyo rubber futures rose 0.4 percent on Tuesday, in line with increases in Shanghai stocks and rubber prices, but the gains were limited by lack of fresh impetus, brokers said.

The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for January delivery rose 0.9 yen to settle at 220.3 yen ($2.78) per kg. Earlier it had risen as much as 1.6 yen, or 0.7 percent, to an intraday high of 221 yen.

The contract hit a one-week high of 224.8 on Friday after Thailand, Indonesia and Malaysia agreed to cut production and exports to shore up slumping prices, before declining on Monday.

"Shanghai stocks have rebounded and helped push up the Shanghai rubber price, which in turn helped support Tokyo rubber," a Tokyo-based trader said.

The initiative by the top three rubber producers to curb exports has proved not to be a major factor driving the market higher because the announcement came as other producers are ramping up production, the trader said.

"Exports from India and Vietnam are on the rise and they could threaten the position of the top three nations, while they are curbing exports," he said.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 90 yuan, or 0.4 percent, to finish at 21,560 yuan ($3,400) per tonne.

The Shanghai Composite Index closed up 0.5 percent at 2,118.3, its biggest gain since a 0.6 percent rise on Aug. 9.

The front-month rubber contract on Singapore's SICOM exchange for September delivery last traded at 253.5 U.S. cents per kg, down 2.5 cents. ($1=79.3700 Japanese yen) ($1=6.3594 Chinese yuan)

(Reporting by Osamu Tsukimori; Additional reporting by Aaron Sheldrick; Editing by Clarence Fernandez)

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