Rubber Books Quarterly Gain as Stimulus Speculation Increases

Rubber advanced to a one-week high in Tokyo, extending a quarterly rally, as speculation increased that governments worldwide will take additional measures to bolster growth after data showed a further slowdown. Prices in Shanghai rallied to the highest close since May 11.

March-delivery rubber settled at 260.5 yen a kilogram ($3,361 a metric ton) after jumping as much as 2.6 percent to 261.3 yen, the highest level since Sept. 20. The most-active contract on Tokyo Commodity Exchange has gained 8.5 percent this quarter, paring this year’s loss to 1.1 percent. It’s 20 percent higher this month, the first gain in seven.

Asian stocks gained and oil climbed, set for the best quarter this year, after reports showing deflation in Japan and shrinking output in South Korea raised speculation governments will do more to spur growth. Spain has pledged to meet a deficit target, spurring prospects it will qualify for an international rescue that will help to stem Europe’s debt crisis.

“Rubber chased a rally in oil and stocks as concerns eased over the European crisis and speculation grew for additional stimulus,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said today by phone.

Japan’s consumer prices in August matched the steepest decline in 16 months, and the nation’s industrial production fell more than economists forecast, while output in South Korea dropped for a third month, according to data released today.

Thai rubber exporters that ship more than 5,000 tons a year are required to cut some cargoes to fall into line with the government’s commitment to limiting the country’s supplies, according to a statement from the farm ministry today. Thailand has agreed with Indonesia and Malaysia to cut exports by a total of 140,000 tons, starting from Oct. 1, to try to buoy prices.

January-delivery rubber jumped 3.8 percent to close at 25,000 yuan ($3,976) a ton on the Shanghai Futures Exchange, gaining 8.4 percent this quarter. Thai rubber free-on-board increased 1 percent to 97.65 baht ($3.17) a kilogram today, Rubber Research Institute of Thailand data show.

To contact the reporter on this story: Aya Takada in Tokyo at atakada2@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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