The most-active rubber contract on the Shanghai futures exchange for January delivery surged 560 yuan to finish at 16,615 yuan (US$2,489) per tonne. It earlier touched a high of 16,750 yuan, the highest since April 7.
An overnight rally in Shanghai led to fresh buying in Tokyo in early trade and Shanghai’s further gains in day-trading then lent an extra push, a Tokyo-based dealer said.
Bridgestone Corp, the world’s biggest tyre maker, on Wednesday lifted its net profit forecast for this calendar year by 3% to 289 billion yen (US$2.63 billion) due to higher-than-expected first-half profit, backed by product price rises that passed on higher material costs.
The Japanese company also said on Tuesday it would invest US$304.3 million for plant expansion in India over the next five years to boost tyre output to meet growing demand.
(US$1 = 109.8000 yen)
(US$1 = 6.6750 Chinese yuan renminbi)