Rubber surged the most since 2011 as Japan’s currency neared a four-year low, boosting the appeal of yen-denominated futures, and as U.S. payrolls climbed.
Rubber for delivery in October rose 6.8 percent to 270.7 yen a kilogram ($2,734 a metric ton) on the Tokyo Commodity Exchange, the biggest gain for a most-active contract at close since Nov. 14, 2011. The rally pared this year’s losses to 11 percent. The market reopened today after a four-day weekend.
The yen weakened to 99.44 per dollar, nearing a four-year low of 99.95 reached on April 11. The Japanese currency came under pressure amid expectations that the U.S. economic recovery will gather pace after a report showed the nation added more jobs than forecast last month.
“Optimism grew that the U.S. recovery is picking up, boosting investor appetite for rubber futures,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said by phone today.
American payrolls expanded by 165,000 workers last month after a revised 138,000 gain in March that was higher than first estimated, Labor Department figures showed May 3. U.S. economic growth will slow to 1.5 percent this quarter before strengthening to 2.6 percent in the final three months of the year, according to Bloomberg surveys.
Rubber for delivery in September on the Shanghai Futures Exchange lost 0.6 percent to 19,825 yuan ($3,220) a ton. Thai rubber free-on-board jumped 3.5 percent to 88.85 baht ($3) a kilogram today, according to the Rubber Research Institute of Thailand.