Rubber Rebounds From Seven-Week Low as Obama Wins Re-Election
Rubber advanced for the first time in four days, rebounding from a seven-week low, as U.S. President Barack Obama won a second term, fueling speculation that the world’s largest economy will maintain its stimulus program.
Rubber for April delivery gained as much as 2.4 percent to 252.5 yen a kilogram ($3,149 a metric ton) on the Tokyo Commodity Exchange before settling at 249 yen. Futures ended at 246.6 yen yesterday, the lowest close since Sept. 13. The most- active contract, which has lost 5.5 percent this year, almost doubled since the end of 2008.
Obama defeated Republican Mitt Romney, securing at least 303 electoral votes, with 270 needed for victory, according to a projection from The Associated Press. Asian stocks extended gains while the dollar weakened.
“Obama’s re-election means the U.S. will likely maintain the easier monetary policy for economic growth, which is positive for commodities,” Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo, said by phone today.
Monetary easing by the U.S. will also keep the U.S. dollar under pressure, boosting the appeal of commodities as alternative assets, he said.
Oil traded near a two-week high in New York, lifting the appeal of natural rubber as a substitute for synthetic products used in tires. Crude gained the most in a month yesterday on forecasts U.S. gasoline supplies dropped after Hurricane Sandy forced the shutdown of East Coast refineries.
Rubber for May delivery gained 0.8 percent to close at 24,005 yuan ($3,844) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board rose 1.1 percent to 92.20 baht ($3.01) a kilogram today, according to the Rubber Research Institute of Thailand.
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