Rubber rises on Fed news
Rubber climbed on speculation that central banks in the US and China may add stimulus to bolster growth, supporting demand for the commodity used in tyres.
The January-delivery contract rose as much as 1.6% to 222 a kilogramme before ending at 220.3 on the Tokyo Commodity Exchange.
That pared this years decline to 16%.
Many US Federal Reserve policy makers said additional stimulus probably will be needed unless the economy shows signs of a durable pickup, according to minutes of their latest meeting released yesterday. People's Bank of China Governor Zhou Xiaochuan said adjustments to interest rates and banks reserve requirements are still possible. Oil and base metals advanced.
Rubber chased a rally in oil and other industrial commodities amid growing expectations for monetary easing, said Kazuhiko Saito, an analyst at broker Fujitomi Co in Tokyo.
Oil rose for a third day in New York, boosting the appeal of natural rubber as an alternative to synthetic products.
January-delivery rubber gained 2.3% to close at 21,880 yuan ($3,446) a tonne on the Shanghai Futures Exchange. Thai rubber free-on-board fell 1.2% to 85.75 baht a kilo, the Rubber Research Institute of Thailand said on its website.
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