Sept. 16 (Bloomberg) — Rubber jumped, advancing for a second day, after U.S. retail sales in August expanded by the most in three years, increasing speculation that a recovery in the world’s largest economy will swell demand.

Futures in Tokyo surged as much as 4.8 percent, also boosted by Federal Reserve Chairman Ben S. Bernanke’s comments in Washington yesterday that the worst U.S. recession since the 1930s has probably ended. Rubber plunged to a six-week low yesterday amid concern that demand in China, the world’s largest consumer, may be hurt by a U.S. tariff on Chinese tire imports.

“Better-than-expected U.S. sales data provided support to the price of futures,” Kazuhiko Saito, chief analyst at Tokyo- based commodity broker Fujitomi Co., said today by phone.

February-delivery rubber gained as much as 9.4 yen to 206.4 yen a kilogram ($2,278 a metric ton) on the Tokyo Commodity Exchange before settling at 203.3 yen.

The 2.7 percent increase in U.S. retail sales exceeded economists’ forecasts and followed a 0.2 percent drop in July, Commerce Department figures showed. Purchases excluding automobiles climbed 1.1 percent, topping the highest forecast.

Bernanke said yesterday “even though from a technical perspective the recession is very likely over at this point, it’s still going to feel like a very weak economy for some time.” The remarks are his most explicit statement that the contraction that began in December 2007 is over.

Rubber also increased after crude oil closed 3 percent higher yesterday, increasing the appeal of natural rubber as an alternative to synthetic products made from petroleum.

Crude oil for October delivery traded up 0.1 percent at $70.98 a barrel in electronic trading on the New York Mercantile Exchange as of 3:34 p.m. Tokyo time.

January-delivery rubber on the Shanghai Futures Exchange added 2.5 percent to 17,720 yuan ($2,596) a ton at 2:37 p.m. local time.

Source: Bloomberg

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