Rubber headed for the biggest monthly advance since December as economic data from Japanto the U.S. showed signs of improvement, boosting demand for the commodity used in tires.
Rubber for delivery in February on the Tokyo Commodity Exchange gained as much as 0.8 percent to 274.1 yen a kilogram ($2,790 a metric ton) and was at 272.5 yen at 10:22 a.m. Futures climbed 1.2 percent this week and 13 percent in August.
Japan’s consumer prices increased at the fastest pace since 2008 in July, adding to signs that Prime Minister Shinzo Abe is making progress in pulling the economy out of deflation. A report showed yesterday U.S. economic growth beat estimates, sending the dollar higher against the Japanese currency and boosting the appeal of yen-based contracts.
“Data showing a recovery in the U.S. and Japanese economies are positive for rubber demand,” said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo.
The U.S. economy grew 2.5 percent in the second quarter, up from an initial estimate of 1.7 percent and more than the 2.2 percent projected by economists. Japan’s industrial production rose 3.2 percent in July from the previous month, according to data from the Trade Ministry today.
Futures for January delivery were little changed at 20,140 yuan ($3,291) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board lost 0.4 percent to 84.65 baht ($2.63) a kilogram yesterday, according to the Rubber Research Institute of Thailand.