Rubber Advances in Tokyo as Yen Near 6-Month Low Raises AppealAya Takada
Rubber snapped two-day losing streak after Japan’s currency slid to the lowest level in six months against the dollar, increasing the appeal of yen-based futures.
The contract for delivery in May on the on the Tokyo Commodity Exchange advanced 0.6 percent to settle at 258.5 yen a kilogram ($2,529 a metric ton). The gains pared losses for the most-active contract this month to 1.2 percent.
The yen slid to 102.28 per dollar, the lowest level since May 29, after data showed U.S. jobless claims unexpectedly fell last week to a two-month low. Japan’s Nikkei 225 Stock Average settled at the highest level since 2007 as a weaker yen boosted earnings outlook for Japanese exporters including Bridgestone Corp., the world’s biggest tiremaker.
“A rally in global stocks raised investor appetite for riskier assets, leading to sales of the yen and providing support to futures in Tokyo,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo.
Investors also want to see if anti-government protests in Thailand will spread from Bangkok to rubber-producing areas, disrupting shipments from the world’s largest exporter, he said.
Thai rubber free-on-board added 0.4 percent to 79.2 baht ($2.46) a kilogram today, according to the Rubber Research Institute of Thailand. The contract for May delivery on the Shanghai Futures Exchange added 1.5 percent to 19,265 yuan ($3,162) a ton.