TOKYO, Dec 14 (Reuters) – Key TOCOM rubber futures rose to an almost seven-month high on Friday after data showing a pick-up in China’s manufacturing sector fuelled a rally in a technically driven market.
China’s HSBC flash purchasing managers’ index for December hit a 14-month high of 50.9, showing growth in China’s vast manufacturing sector picked up and underlined a brighter outlook for the economy in coming months.
The most-active Tokyo Commodity Exchange rubber contract for May delivery settled up 4.9 yen, or 1.8 percent, at 276.4 yen per kg.
The contract’s rally above the recent ceiling of 275 yen turned a technical chart bullish and invited more buying although concerns remained about ample stocks in China, the world’s biggest rubber consumer.
The May contract had earlier risen as high as 277.0 yen, the highest for any benchmark since May 23. The contract rose 4.9 percent on the week.
The most active Shanghai rubber contract for May delivery rose 375 yuan to 25,090 yuan per tonne.
The front-month January contract on the SICOM in Singapore was last traded at 293 U.S. cents per kg, up 7 cents.
(Reporting by Risa Maeda; editing by James Jukwey)
Source: Reuters
