By Aya Takada
Oct. 1 (Bloomberg) -- Rubber advanced after a report showed confidence among Japan’s largest manufacturers rose for a second quarter, boosting optimism that demand may increase for the raw material used to make tires.
Futures in Tokyo rose as much as 4.2 percent to 205 yen a kilogram ($2,284 a metric ton), matching the one-week high reached on Sept. 24. The Tankan index of sentiment among makers of cars, electronics and other goods climbed to minus 33 from minus 48 in June, the Bank of Japan said today. Confidence rose as global government stimulus spending rekindled exports.
“The good data gave support to industrial commodities including rubber,” Kazuhiko Saito, chief analyst at Tokyo-based commodity broker Fujitomi Co., said today by phone.
March-delivery rubber gained 2.6 percent to 201.8 yen a kilogram on the Tokyo Commodity Exchange at 11:20 a.m. local time. Prices extended a 21 percent increase the past three months, the largest quarterly gain since the period ended March 31, 2006.
Futures also increased as manufacturing in China, the world’s largest rubber consumer, expanded for a seventh month in September on stimulus spending and record growth in new loans.
The official Purchasing Managers’ Index increased to a seasonally adjusted 54.3 from 54.0 in August, the Federation of Logistics and Purchasing said today in Beijing.
The Shanghai Futures Exchange is closed for a holiday as the nation celebrates its 60th anniversary today. The January- delivery contract surged as much as 7 percent to the highest level since Sept. 17 yesterday.
Prices climbed amid speculation China may buy surplus rubber from the local market as demand may weaken after the U.S. imposed tariffs on tire imports from the country, Takaki Shigemoto, a commodity analyst at research and investment company TOS, said yesterday.
To contact the reporter on this story: Aya Takada in Tokyo atakada2@bloomberg.net
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