Sept. 7 (Bloomberg) — Rubber climbed for a third day after a U.S. government report showed companies cut fewer jobs than estimated in August, easing concern worsening unemployment may weaken demand for the commodity used in car tires.

Futures in Tokyo rose as much as 2.2 percent to the highest since Aug. 31 after a U.S. Labor Department report showed the country lost 216,000 jobs in August, less than economists forecast, sparking gains in Asian equities.

“Rubber increased in tandem with stocks as they drew support from better-than-expected U.S. jobs data,” Takaki Shigemoto, analyst at Tokyo-based commodity broker Okachi & Co., said today by phone.

February-delivery rubber rose as much as 4.6 yen to 211.7 yen a kilogram ($2,272 metric ton) on the Tokyo Commodity Exchange before settling at 211.5 yen.

The U.S. jobs report eased concern that the world’s biggest economy is weakening after ADP Employer Services said private employers cut 298,000 jobs in August, more than economists’ forecast, and growth in factory orders trailed projections.

The MSCI Asia Pacific Index gained for a third day, climbing 0.9 percent to 113.87 as of 3:48 p.m. Tokyo time. Equities rallied even after the jobs report also said the unemployment rate climbed to a 26-year high of 9.7 percent last month, a steeper increase than economists projected.

January-delivery rubber on the Shanghai Futures Exchange added 0.9 percent to 18,245 yuan ($2,672) a ton as of 2:49 p.m. local time. Gains were limited after inventories monitored by the bourse increased to the highest since March 2008, raising concern that demand in the world’s largest rubber consumer may be slowing, Shigemoto said.

Rubber inventories increased 3,279 tons to 85,796 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the exchange said on Sept. 4.

Source: Bloomberg

Comments are closed.