Sept. 26 (Bloomberg) -- Rubber was little changed today and headed for a monthly gain as the Japanese currency retreated amid speculation the government will study a corporate tax cut and advise public pension funds to hold more risky assets.
The contract for March delivery on the Tokyo Commodity Exchange, which became the most-active by volume today, settled at 277.7 yen a kilogram ($2,706 a metric ton), recovering from an earlier decline of as much as 1.3 percent. Futures have advanced 3.2 percent in September.
The currency weakened after Kyodo News reported that the Japanese government would pledge to “promptly” start a study on cutting the effective corporate tax rate.
“The yen helped support the rubber market,” said Gu Jiong, an analyst at broker Yutaka Shoji Co. in Tokyo.
Rubber for January delivery on the Shanghai Futures Exchange gained 0.2 percent to close at 20,620 yuan ($3,370) a ton. Chinese markets will be closed Oct. 1-7.
Thai rubber free-on-board dropped 0.9 percent to 81.55 baht ($2.62) a kilogram today, according to the Rubber Research Institute of Thailand.
--Editors: Brett Miller, Jake Lloyd-Smith