Rubber prices managed to regain their momentum and ended higher on the second day of trading on Tuesday (14/11/2017), supported by optimism over the Chinese economy and the weakening performance of Japanese yen.
The price of rubber for delivery in April 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.05% or 0.10 points to 202 yen per kilogram (kg).
Previously, the rubber price opened with a weakening of 0.20% or 0.40 points at position 201.50 after trading Monday (13/11) ended up rebounding 1.66% in position 201.90.
According to Gu Jiong, an analyst at Yutaka Shoji, rubber prices are buoyed by optimism over China's growing economic conditions, which could hike commodity prices including rubber.
"In addition, the weakening Japanese yen exchange rate also contributed to the price boost," said Gu, as quoted by Bloomberg.
China's economic pace has put a brake on the pace of factory data, investment and retail sales slows.
Based on data from the China Bureau of Statistics, industrial output rose 6.2% in October from a year earlier, lower than the 6.3% projection average and September data at 6.6%.
The retail sales jumped 10% from a year earlier, compared with forecasts for a 10.5% increase, and September's 10.3% gain. Fixed asset investment excluding rural households rose 7.3% in October, according to economists' forecasts.
China is said to have hinted at increasing the focus on the quality of economic expansion rather than its speed.
Supporting rubber prices, the yen continued to appreciate 0.03% or 0.03 points to 113.66 per dollar at 14.01 GMT, after Monday (13/11) ended down 0.09% at 113 , 63.
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