Rubber Reaches One-Year High as Stock Rally, Oil Boosts Demand
Tokyo: Rubber rose for a second day, reaching its highest level in a year, as a rally in equities boosted investor confidence that the global economic recovery will increase demand for raw materials.
Prices in Tokyo climbed as much as 2.9 percent to 225.1 yen a kilogram ($2,490 a metric ton), the highest level since Oct. 7, 2008. Futures also gained as oil’s advance to a one-year high boosted the appeal of natural rubber as an alternative to synthetic products made from petroleum.
“The bull run in global stocks increased investor appetite for risk assets, leading to their purchases of commodities,” Hisaaki Tasaka, analyst at Tokyo-based commodity broker ACE Koeki Co., said today by phone. “Stronger oil is also positive for the price of rubber.” (Bloomberg)
Wednesday, October 21, 2009
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment