TOKYO, May 1 (Reuters) - Benchmark Tokyo rubber futures rebounded on Thursday as Japanese shares climbed, but trade was quiet as markets in the world's biggest consumer China and producer Thailand were closed for holidays.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for October delivery rose 1.7 yen, or 0.8 percent, to settle at 207.2 yen ($2.03) per kg.
Japan's Nikkei stock average posted its biggest gain in over two weeks on Thursday, helped by a record closing high in the Dow Jones Industrial Average and solid earnings from brokerage firms and some manufacturers.
"Strong stock prices supported the rubber market and more than offset weaker-than-expected economic data in China," said Satoru Yoshida, commodity analyst at Dot Commodity.
Activity in China's factories increased marginally in April but export orders fell sharply, a government survey showed on Thursday, adding to questions about whether the world's second-largest economy is stabilising after its first-quarter slowdown.
Japanese auto sales in April dropped 5.5 percent year-on-year after a sales tax hike that took place last month sapped demand, industry data showed on Thursday, but the result was somewhat better than expected, according to senior analyst at Research firm IHS Automotive.
"The rubber market is in a rebound phase after dropping below 200 yen in late April. Although investors are worried about China's demand and higher Japanese stockpiles, the benchmark may test recent resistance at 207.5 yen," said Dot Commodity's Yoshida.
Chinese financial markets are closed on Thursday and Friday for the Labour Day holiday, and will resume trade on Monday. Markets in Thailand and Singapore will reopen on Friday. ($1 = 102.1500 Japanese Yen) (Reporting by Yuka Obayashi; Editing by Joseph Radford)