By Rattaphol Onsanit
Jan. 29 (Bloomberg) -- Natural rubber futures advanced to a six-day high in Tokyo, on optimism that U.S. stimulus measures will help ease the global economic recession and boost demand for the raw material used to make car tires.
The commodity rebounded from yesterday’s 1.6 percent slide, gaining as much as 2.7 percent to the highest price since Jan. 21. The gain followed equity market surges in Asia and U.S.
“Rubber is taking cues from investment flows into stock markets,” Navarat Kaewpratarn, a senior marketing official at Bangkok-based Future Agri Trade Ltd., said today by phone.
Rubber for July delivery added 1.8 percent to 148.3 yen a kilogram ($1,644 a metric ton) on the Tokyo Commodity Exchange at the 11 a.m. local time break. Shanghai markets are closed this week for the Lunar New Year holiday.
Asian shares rallied after the U.S. House passed President Barack Obama’s $819 billion stimulus package, aimed at lifting the economy out of recession through tax cuts and more than a half-trillion dollars in new spending.
The MSCI Asia Pacific Index added 1.4 percent to 84.70 at 11:29 a.m. in Tokyo. The Nikkei 225 Stock Average gained 1.7 percent.
To contact the reporter on this story: Rattaphol Onsanit in Bangkok at ronsanit@bloomberg.net
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