Rubber recovered from a three-month low after U.S. jobless claims unexpectedly fell and the Japanese currency traded near a 3 1/2 year low, improving the appeal of yen-denominated contracts.
The contract for delivery in August on the Tokyo Commodity Exchange gained 1.9 percent to end at 282.9 yen a kilogram ($2,942 a metric ton). Futures settled 277.6 yen yesterday, the lowest since Dec. 14, and fell 5.1 percent this week.
Global equities rallied after employment reports in the U.S. and Australia topped estimates, building confidence the economic recovery is gaining strength. Japanese Prime Minister Shinzo Abe’s initiative to end two decades of economic stagnation took its biggest step yet as Parliament confirmed his picks for a new Bank of Japan leadership team.
“The U.S. jobs data increased investor confidence in the nation’s economic recovery, spurring purchases,” said Kazuhiko Saito, analyst at broker Fujitomi Co in Tokyo. “Rubber also rebounded as a drop to a three-month low attracted buyers.”
The number of people filing claims for jobless benefits averaged 346,750 over the past four weeks, the lowest since March 2008, according to U.S. Labor Department data.
Thai rubber free-on-board was unchanged at 86.30 baht ($2.92) a kilogram today, according to the Rubber Research Institute of Thailand.