Rubber: Tokyo futures rise to two-month high

Thursday, 13 December 2012 00:30 - - {{hitsCtrl.values.hits}}

TOKYO (Reuters): Key TOCOM rubber futures rose 1.9% 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 US 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 pickup in domestic activity.

China’s exports growth slowed sharply, to a much lower-than- expected 2.9% in November.

The key Tokyo Commodity exchange rubber contract for May delivery settled up 3.9 Yen, or 1.5%, at 267.5 Yen per kg. The benchmark contract rose as high as 268.5 Yen, up 4.9 Yen, or 1.9%, the highest since 12 October.

The most active Shanghai rubber contract for May delivery closed up 2.1% at 24,925 Yuan per tonne. The front-month January contract on the SICOM in Singapore was last traded at 285.7 US cents per kg, up 0.8%.