TOKYO, Dec 10 (Reuters) – Key TOCOM rubber futures rose 1.9 percent to a two-month high on Monday, tracking gains in the Shanghai market as strong output data in China over the weekend helped revive risk appetite, with rises in shares and some commodities extending additional support.
“Strong gains in the Shanghai market lifted the market, although China’s trade data on Monday showed the global economy is still in a tough situation,” said Toshitaka Tazawa, an analyst at trading company Fujitomi Co.
Better U.S. jobs data and a rebound in China’s factory output pushed Asian shares, base metals and other riskier assets higher on Monday.
However, China’s trade statistics underscored the global headwinds dragging on an economy showing otherwise solid signs of a pick up in domestic activity.
China’s exports growth slowed sharply to a much lower-than- expected 2.9 percent in November.
The key Tokyo Commodity Exchange rubber contract for May delivery settled up 3.9 yen, or 1.5 percent, at 267.5 yen per kg. The benchmark contract rose as high as 268.5 yen, up 4.9 yen, or 1.9 percent, the highest since Oct 12.
The most active Shanghai rubber contract for May delivery closed up 2.1 percent at 24,925 yuan per tonne.
The front-month January contract on the SICOM in Singapore was last traded at 285.7 U.S. cents per kg, up 0.8 percent.
Japan’s Nikkei share average edged higher on Monday as gains in index heavyweights Fast Retailing Co Ltd and Advantest Corp erased losses caused by investors booking profits in export-focused firms after weaker-than-expected Chinese trade data.
Brent crude futures held above $107 a barrel, snapping five straight days of losses, as promising data out of the world’s top two oil consumers revived demand growth hopes in a well-supplied market.
(Reporting by Yuko Inoue; Editing by Anupama Dwivedi)
Source: Reuters
