Rubber advanced for a second day after data showed industrial production expanded more than forecast in the U.S., spurring optimism demand will improve.
Rubber for March delivery climbed as much as 1.1 percent to 262.8 yen a kilogram ($3,335 a metric ton) before settling at 260.7 yen on the Tokyo Commodity Exchange. The most-active contract has rallied from a two-week low of 256 yen on Oct. 15.
Output from U.S. factories, mines and utilities rose 0.4 percent in September, twice as much as the median forecast of economists surveyed by Bloomberg News, data from the Federal Reserve in Washington showed yesterday. Rubber also advanced on speculation Spain will move toward seeking financial aid, said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo.
“Optimism about the Spanish bailout and the U.S. economy improved market sentiment,” Saito said today by phone.
Germany’s Chancellor Angela Merkel said Germans should restrain criticism of Greece, and two senior coalition lawmakers said the country is open to credit aid for Spain, signaling a softening of public rhetoric before European Union leaders convene for a summit tomorrow. Spain retained its investment- grade credit rating from Moody’s Investors Service, which cited a reduction in the risk of losing market access.
Rubber demand will gradually increase next year as the U.S. auto industry shows signs of improvement, Yium Tavarolit, chief secretary of the International Rubber Consortium Ltd., said today in Medan, Indonesia.
Rubber for delivery in January gained 0.3 percent to close at 25,300 yuan ($4,046) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board dropped to 97.80 baht ($3.20) a kilogram today from 98.30 baht yesterday, according to the Rubber Research Institute of Thailand.
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