TOKYO: Rubber gained the most in a month after data showed Japan’s economy expanded faster than estimated last quarter and as oil snapped a four-day losing streak, raising the appeal of the commodity used in tires.
October-delivery rubber advanced as much as 2.1% to 270.7 yen a kilogram (US$3,371 a metric ton), the biggest gain for a most-active contract since April 18, before trading at 269.6 yen on the Tokyo Commodity Exchange at 10:40 a.m. Futures fell to 261.5 yen in after-hours trading yesterday, the lowest level since Jan. 5, as commodities fell on concern that Greece will exit the Euro.
Gross domestic product gained an annualized 4.1%, Japan’s Cabinet Office said today. The median estimate of 27 economists surveyed by Bloomberg was for a 3.5% expansion. The growth was led by reconstruction spending and auto sales expansion stimulated by government subsidies.
“The Japanese data underlined the strength of the auto industry, which is positive for rubber demand,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said today by phone.
Rubber also advanced as oil in New York rebounded from the lowest level since November, easing speculation that the price of synthetic rubber may fall, he said.
September-delivery rubber on the Shanghai Futures Exchange added 1.4% to 24,325 yuan (US$3,849) a ton. Thai rubber on a free-on-board basis dropped 0.7% to 114.50 baht (US$3.65) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Thailand’s Rubber Estate Organization kept the price at which it will buy ribbed smoked sheets from farmers unchanged at 115.39 baht to 115.48 baht per kilogram, despite a decline at auctions, the agency said on its website yesterday. (Bloomberg/aph)
MOST VISITED CHANNEL: CURRENT ISSUE, ECONOMY, BUSINESS, MARKET & CORPORATE, CONSUMER