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Tyre makers rally on Michelin data, rubber prices

Feb 21(Reuters) – South Korea’s main KOSPI share index was down 0.61 percent at 2,012.32 points as of 0443 GMT.

Stocks on the move on Thursday include:


Shares of South Korean tyre makers rose after rubber prices plunged and market data from France’s Michelin spurred expectations of a demand recovery.

Michelin, the world’s second-largest tyremaker, said on Wednesday that the U.S. replacement tyre market for passenger cars and light trucks grew 6 percent in January from a year earlier, while the corresponding figure forChina jumped by 28 percent, offsetting a 4 percent fall in Europe.

“Michelin data fuelled hopes that U.S. demand has rebounded, and combined with recent falls in rubber prices, tyre shares are rallying today,” said Lim Eun-young, an analyst at Dongbu Securities.

The benchmark Tokyo rubber futures contract for July delivery fell 3 percent on Thursday to its lowest in eight weeks, tracking a sell-off in U.S.commodities after speculation that a hedge fund was forced to sell positions across metals and oil markets.

“Today’s fall in rubber prices leave more room for tyre makers to improveearnings,” said Lee Hyun-soo, an analyst at Kiwoom Securities.

Nexen Tire rallied 7.3 percent, Kumho Tire gained 6 percent and Hankook Tire rose 1.8 percent. (Reporting By Hyunjoo Jin; Editing by Prateek Chatterjee)

Source: Reuters

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