Oct. 11 (Bloomberg) -- Rubber had its first weekly gain since Sept. 20 as Japan’s currency weakened, boosting the appeal of yen-based futures, and as China’s auto sales expanded.
The contract for March delivery rose 2 percent to settle at 264.5 yen a kilogram ($2,689 a metric ton) on the Tokyo Commodity Exchange, extending its advance this week to 4 percent.
The yen declined to 98.55 per dollar, the lowest level this month, on optimism U.S. lawmakers will lift the debt ceiling to avert a default. President Barack Obama and House Republican leaders were moving toward an agreement to extend the nation’s borrowing authority even as they remained at odds over terms for ending the partial government shutdown.
“Optimism that the U.S. will avert a default spurred investors to buy back riskier assets,” said Kazuhiko Saito, an analyst at broker Fujitomi Co. “A weaker yen is another support to futures in Tokyo.”
China’s passenger-vehicle sales rose more than analysts’ estimates in September, improving the outlook for demand from the world’s largest consumer of the commodity used in tires.
Wholesale deliveries of cars, multipurpose and sport- utility vehicles climbed to 1.59 million units last month, the state-backed China Association of Automobile Manufacturers said today. That compared with the 1.5 million-unit median estimate of five analysts surveyed by Bloomberg.
Rubber for January delivery on the Shanghai Futures Exchange climbed 1.8 percent to close at 20,655 yuan ($3,376) a ton. Thai rubber free-on-board rose 0.3 percent to 79.45 baht ($2.54) a kilogram today, according to the Rubber Research Institute of Thailand.
--Editors: Jarrett Banks, Brett Miller