Rubber snapped two-day losing streak after Japan’s currency slid to the lowest level in six months against the dollar, raising the appeal of yen-based futures.
The contract for delivery in May on the on the Tokyo Commodity Exchange advanced as much as 1.1 percent to 259.7 yen a kilogram ($2,545 a metric ton) and traded at 259.5 yen at 10:42 a.m. local time. The gains pared losses for the most-active contract this month to 0.8 percent.
The yen slid to 102.28 per dollar, the lowest level since May 29, after data showed U.S. jobless claims unexpectedly fell last week to a two-month low. Japan’s Nikkei 225 Stock Average (NKY)is headed for the highest close since 2007 as a weaker yen boosted earnings outlook for Japanese exporters including Bridgestone Corp., the world’s biggest tiremaker.
“A rally in global stocks raised investor appetite for riskier assets, leading to sales of the yen and providing support to futures in Tokyo,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo.
Investors also want to see if anti-government protests in Thailand will spread from Bangkok to rubber-producing areas, disrupting shipments from the world’s largest exporter, he said.
Thai rubber free-on-board declined 0.3 percent to 78.9 baht ($2.46) a kilogram yesterday, according to the Rubber Research Institute of Thailand. The contract for May delivery on the Shanghai Futures Exchange added 1.5 percent to 19,255 yuan ($3,145) a ton.
Source: Bloomberg
