After almost three months being stagnant, rubber jumps after China’s expands manufacturing expands leading to a boost in the outlook for the commodity used to make tyres.
April delivery of rubber gained 1.5% at 259 yen per kg on TOCOM. The most active contract attained 0.5% this week after a week of gaining 0.95.
According to the National Bureau of Statistics and China Federation of Logistics and Purchasing, the purchasing manager’s index boosted to 50.2 in October from 49.8 a month earlier.
“The data eased concerns about China’s economic slowdown, leading to buybacks of futures,” said Takaki Shigemoto, a Japanese analyst.
The reports have brought many speculations that China’s economy will grow this quarter after the export, retail sales and industrial production have boosted in September.
The positive futures have been due to the weakening Japanese currency against dollar.(RJA)