TOKYO, Aug 1 (Reuters) – Benchmark Tokyo rubber futures bounced back on Monday, as investors looked for bargains following a plunge last Friday and after a better-than-expected data on top buyer China. Manufacturing activity in China expanded for the first time in 17 months in July as output and new orders increased for smaller and medium size firms, a private business survey showed on Monday.
The Caixin/Markit Manufacturing Purchasing Managers’ index (PMI) rose to 50.6, beating market expectations of 48.7 and up from 48.6 in June. “The stronger-than-expected Caixin figure came as a bright spot,” said Satoru Yoshida, commodity analyst, Rakuten Securities.
The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery JRUc6 0#2JRU: finished 2.4 yen, or 1.6 percent, higher at 155.9 yen ($1.52) per kg. The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, tumbled 2.9 percent last Friday and posted a third monthly decline. “I think the rubber market will gradually move higher on hopes for stronger demand in China,” Yoshida said.
The most-active rubber contract on the Shanghai futures exchange for September delivery SNRcv1 fell 70 yuan to finish at 10,985 yuan ($1,654.47) per tonne. The front-month rubber contract on Singapore’s SICOM exchange for September delivery STFc1 last traded at 128.9 U.S. cents per kg, up 1.7 cent.
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($1 = 102.3900 yen) ($1 = 6.6396 Chinese yuan)
(Reporting by Yuka Obayashi; Editing by Sherry Jacob-Phillips)
