Rubber rebounded from a six-week low, joining a rally in equities and commodities, after the Federal Reserve pledged to keep its benchmark interest rate low at least through mid-2013 in a bid to revive the world's biggest economy.
The January-delivery contract gained as much as 2.7 per cent to 365 yen per kg ($4,739 a metric tonne) on the Tokyo Commodity Exchange, before settling at 359 yen (Dh17). The most-active contract fell as much as 6.1 per cent to 348 yen Wednesday, the lowest level since June 29.
Asian stocks climbed and commodities gained, with oil rebounding from a 10-month low, after the Fed's pledge. The MSCI Asia Pacific Index climbed as much as 2.7 per cent yesterday, halting a six-day slump driven by concern that the global economy may slip into recession.
The "Fed's statement gives a boost for commodities markets, including rubber, after US credit-rating downgrade triggered panic selling," said Ker Chung Yang, an analyst at Phillip Futures. The Fed's statement had helped to restore investor confidence that demand for rubber will probably continue to grow, Ker said.