Tokyo rubber futures edged higher on Wednesday, hovering near its strongest level in seven months, as the yen weakened and Japanese stocks rose on growing expectations of easier monetary policy under a new government. The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery settled 2 yen higher at 287.7 yen ($3.43) per kg after rising as high as 288.5 yen.

"TOCOM prices rose in line with Japanese shares prices, but profit-taking prevented them from rising substantially," said a Bangkok-based dealer. Tokyo futures, which set the tone for physical prices, rallied to 289 yen on Tuesday, the highest since May, because of a drop in the yen, making yen-priced TOCOM rubber cheaper for holders of other currencies.

The most-active rubber contract on the Shanghai futures exchange for May delivery slipped 10 yuan to finish at 25,280 yuan ($4,100) per tonne. The front-month rubber contract on Singapore's SICOM exchange for January delivery was last traded at $2.91 per kg, down 1.8 cents.

Copyright Reuters, 2012