Rubber climbed to a two-week high as a rally in Asian stocks raised investor confidence in the economic recovery, increasing purchases of riskier assets.
Futures gained as much as 0.9 percent and advanced for a second day. Asian stocks climbed to a one-month high as investor optimism increased after South Korea economy grew in the second- quarter and Japan’s exports exceeded economists’ estimates.
Japanese shipments abroad advanced 27.7 percent in June from a year earlier, the Finance Ministry said today. It was faster than the median estimate of 19 economists surveyed by Bloomberg News for 23.5 percent. South Korea’s gross domestic product increased 1.5 percent from the previous three months, the central bank said, more than the 1.3 percent median forecast in a separate survey.
“A rally in equities markets improved investor sentiment, leading to purchases of industrial commodities,” Kazuhiko Saito, analyst at Tokyo-based broker Fujitomi Co., said today by phone.
December-delivery rubber rose to as high as 267.9 yen per kilogram ($3,065 a metric ton) on the Tokyo Commodity Exchange, the highest level since July 12, before settling at 265.9 yen.
July-delivery rubber gained 0.7 percent to expire at 400 yen. It surged 11 percent on July 23 amid speculation that low stockpiles in Japan may make physical delivery difficult at its expiry.
Data from the Tokyo exchange showed last week that natural- rubber stockpiles monitored by the bourse dropped by 29 percent to 1,341 tons as of July 10. It was the lowest level since at least 2001, according to exchange spokesman Seiki Ichimura.
Subsidy Ends
Gains in rubber futures were limited amid concern that car sales may decline after the government ends a subsidy program for fuel-efficient models, Saito at Fujitomi said.
Japan won’t extend a subsidy program for buyers of eco- friendly cars, Nikkei Telecom 21 reported on July 23, citing Masayuki Naoshima, minister for economy, trade and industry. The program is scheduled to terminate at the end of September.
Toyota Motor Corp. and Honda Motor Co., Japan’s two biggest carmakers, led an eleventh-straight increase in domestic monthly auto sales in June as government incentives boosted demand.
Sales of cars, trucks and buses, excluding minicars, climbed 21 percent to 293,537 vehicles in June from a year earlier, the Japan Automobile Dealers Association said July 1.
November-delivery rubber on the Shanghai Futures Exchange closed 1 percent lower at 22,280 yuan ($3,286) a ton at 3:00 p.m. local time.
(bloomberg.com)
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