Rubber advanced from a two-week low after data showed China’s manufacturing strengthened more than anticipated this month, boosting demand from the world’s largest consumer of the commodity used in tires.
The contract for delivery in March climbed as much as 0.6 percent to 263 yen a kilogram ($2,703 a metric ton) on the Tokyo Commodity Exchange and was at 262.2 yen at 11:48 a.m. Futures earlier fell to 257.8 yen, the lowest level since Oct. 8.
The preliminary 50.9 reading for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compared with a 50.4 median estimate from analysts surveyed by Bloomberg News. Readings above 50 indicate expansion. China’s growth accelerated to 7.8 percent last quarter.
“Recovery in China’s economy will support demand,” said Naohiro Niimura, a partner at research company Market Risk Advisory in Tokyo.
Rubber for January delivery on the Shanghai Futures Exchange rose 0.4 percent to 20,190 yuan ($3,319) a ton. Thai rubber free-on-board was unchanged at 79.55 baht ($2.55) a kilogram on Oct. 22, according to the Rubber Research Institute of Thailand. Thai markets were closed yesterday for holiday.
Source: Bloomberg
