Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rubber Climbs to Seven-Month High on Japan Stimulus Optimism

Dec. 19 (Bloomberg) -- Rubber advanced to the highest level in more than seven months as speculation that the Bank of Japan will add monetary stimulus weakened the nation’s currency, boosting the appeal of yen-based contracts.

Rubber for delivery in May gained 0.7 percent to end at 287.7 yen a kilogram ($3,410 a metric ton) on the Tokyo Commodity Exchange, the highest level for the most-active contract at close since May 10. Futures have advanced 9.2 percent this year.

The benchmark Nikkei 225 Stock Average rose above 10,000 for the first time since April on prospects the Bank of Japan will expand stimulus at a two-day policy meeting that ends tomorrow. The yen traded near the weakest level since April last year against the dollar.

“Rubber was supported by the weak yen,” Gu Jiong, an analyst at commodity broker Yutaka Shoji Co., said by phone from Tokyo. Rising inventories in Shanghai limited the gains, he said.

Natural-rubber inventories monitored by the Shanghai Futures Exchange increased 1,131 tons to 95,927 tons, the highest since March 2010, the bourse said Dec. 14. China is the world’s biggest consumer of rubber.

The contract for delivery in May closed little changed at 25,280 yuan ($4,057) a ton on the SHFE. Thai rubber free-on-board rose 0.5 percent to 96.65 baht ($3.16) a kilogram today, according to the Rubber Research Institute of Thailand.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.