July 19 (Bloomberg) -- Rubber rallied to post the largest weekly gain since May as oil climbed and a weakening Japanese currency increased the appeal of yen-denominated contracts.
Rubber for delivery in December on the Tokyo Commodity Exchange advanced for a third day, rising 1.6 percent to settle at 251.6 yen a kilogram ($2,509 a metric ton). Futures gained 5.5 percent this week, the most since the period to May 10.
The yen extended losses against major currencies this week ahead of elections in Japan, weakening as much as 0.4 percent today to 100.87 per dollar. Crude held near a 16-month high after jobs data and company earnings burnished the U.S. economic outlook.
“Futures in Tokyo tracked a rally in oil and got a boost from the weaker yen,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co. “Gains in Shanghai’s rubber market also eased concern that China’s slowdown will curb demand.”
Rubber for January delivery advanced 0.6 percent to close at 18,460 yuan ($3,008) a ton on the Shanghai Futures Exchange. Most-active contracts climbed 9.2 percent since closing at 16,905 yuan on June 24, the lowest since September 2009.
The economy was stable in the first half and the government can achieve major development goals this year, China Central Television reported yesterday, citing Premier Li Keqiang.
Thai rubber free-on-board gained 0.6 percent to 79.35 baht ($2.55) a kilogram today, according to the Rubber Research Institute of Thailand.
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