Dec. 16 (Bloomberg) -- Rubber pared advances after climbing to a three-month high as lower-than-expected Chinese manufacturing data raised demand concerns, while a stronger yen cut the appeal of the commodity used to make tires.
The contract for delivery in May on the Tokyo Commodity Exchange ended unchanged at 283.7 yen a kilogram ($2,759 a metric ton). Futures earlier climbed to 287.9 yen, the highest level for a most-active contract since Sept. 9.
A Chinese manufacturing index unexpectedly fell to a three- month low as output gains eased and employment weakened, suggesting the world’s second-largest economy is vulnerable to a slowdown. The preliminary reading of 50.5 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with a final figure of 50.8 in November and the 50.9 median estimate in a Bloomberg News survey of 11 analysts. A number above 50 indicates expansion.
“Data from China raised concerns that rubber demand may slow,” Ryuta Imazeki, an analyst at Okachi & Co said by phone from Tokyo. “A stronger yen is also negative for rubber.”
The contract for May delivery on the Shanghai Futures Exchange fell 0.5 percent to close at 19,795 yuan ($3,260) a ton. Thai rubber free-on-board rose 0.2 percent to 83.65 baht ($2.61) a kilogram, according to the Rubber Research Institute of Thailand.
--Editors: Jarrett Banks, Sungwoo Park