Sept. 9 (Bloomberg) -- Rubber climbed to the highest level in more than three months as Japan grew faster than previously estimated last quarter, boosting confidence in the recovery of the world’s third-largest economy.
Rubber for delivery in February gained 1.2 percent to 286 yen a kilogram ($2,873 a metric ton) on the Tokyo Commodity Exchange, the highest settlement for a most-active contract since May 22.
Gross domestic product expanded an annualized 3.8 percent from the first quarter, higher than an initial estimate of 2.6 percent, the Cabinet Office said in Tokyo today. Prime Minister Shinzo Abe’s effort to revive the economy got a boost over the weekend with Tokyo’s successful bid to host the 2020 Olympics.
“Rubber reacted positively to the news about the Olympics and GDP as they lifted prospects for Japan’s economy,” said Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo.
Futures also gained after data showed yesterday that China’s exports beat estimates, raising optimism raw-material demand will improve from the world’s top consumer, he said. China’s exports rose 7.2 percent from a year earlier, customs data showed yesterday. That compares with the 5.5 percent median estimate of a Bloomberg News survey and July’s 5.1 percent gain. Imports rose a less-than-estimated 7 percent.
The contract for January delivery in Shanghai added 0.3 percent to close at 20,870 yuan ($3,410) a ton. Thai rubber free-on-board gained for a second day, rising 0.9 percent to 87.40 baht ($2.71) a kilogram today, according to data from the Rubber Research Institute of Thailand.
Thai rubber farmers will hold rallies across the country’s southern provinces Sept. 14 if the government fails to meet their demands to set a minimum price for ribbed smoked sheet, according to a local group that represents rubber and palm oil farmers in 16 southern provinces. Thailand is the world’s top producer and exporter of rubber.
--Editors: Sungwoo Park, Brett Miller