Asian Rubber Ends Mixed; China Inflation Data Support
10 December 2014, 18:04 SEAST
Asian rubber settled mixed Wednesday after data showed China’s inflation rate rose less than forecast, providing policy makers ample room for further stimulus to support growth, a positive for the market.
The upside, however, was limited as rubber-market sentiment has been persistently poor, with prices down 30% this year.
China’s consumer price index rose 1.4% from a year earlier in November, a five-year low, after a 1.6% on-year rise in October, data from the National Bureau of Statistics showed Wednesday. Economists had expected a 1.6% gain.
Benchmark May natural rubber on the Tokyo Commodity Exchange settled 0.5% higher at 194.6 yen ($1.63) a kilogram, taking cues from rubber futures on the Shanghai Futures Exchange, which settled 0.6% lower after falling by as much as 3.7% early in the trading day.
International Rubber Consortium Chief Executive Yium Tavarolit said in a note that trade would likely be slow for the rest of the December prior to year-end holidays.
May Tocom rubber closed Y1.6 lower at Y193.0/kg in the night session, which is considered part of the next trading day.