Rubber climbed to the highest level in more than three months as Japan grew faster than previously estimated last quarter, boosting confidence in the recovery of the world’s third-largest economy.
Rubber for delivery in February gained as much as 2.7 percent to 290.3 yen a kilogram ($2,912 a metric ton) on the Tokyo Commodity Exchange, the highest level for a most-active contract since May 23. Futures traded at 285.50 yen at 10:32 a.m., extending last week’s 5.1 percent rally.
Gross domestic product expanded an annualized 3.8 percent from the first quarter, higher than an initial estimate of 2.6 percent, the Cabinet Office said in Tokyo today. Prime Minister Shinzo Abe’s effort to revive the economy got a boost over the weekend with Tokyo’s successful bid to host the 2020 Olympics.
“Rubber reacted positively to the news about the Olympics and GDP as they lifted prospects for Japan’s economy,” said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo.
Futures also gained after data showed yesterday that China’s exports beat estimates, raising optimism raw-material demand will improve from the world’s largest consumer, he said.
China’s exports rose 7.2 percent from a year earlier, the General Administration of Customs said in Beijing yesterday. That compares with the 5.5 percent median estimate of 46 economists surveyed by Bloomberg News and July’s 5.1 percent gain. Imports rose a less-than-estimated 7 percent.
Thai rubber free-on-board added 1.2 percent to 86.65 baht ($2.67) a kilogram Sept 6, according to data from the Rubber Research Institute of Thailand. The contract for January delivery climbed 0.2 percent to 20,845 yuan ($3,409) a ton on the Shanghai Futures Exchange.
Source: Bloomberg
