Market and product

Rubber advanced to a one-week highin Tokyo, extending a quarterly rally, as speculation increasedthat governments worldwide will take additional measures tobolster growth after data showed a further slowdown. Prices inShanghai rallied to the highest close since May 11.

March-delivery rubber settled at 260.5 yen a kilogram($3,361 a metric ton) after jumping as much as 2.6 percent to261.3 yen, the highest level since Sept. 20. The most-activecontract on Tokyo Commodity Exchange has gained 8.5 percent thisquarter, paring this year’s loss to 1.1 percent. It’s 20 percenthigher this month, the first gain in seven.

Asian stocks gained and oil climbed, set for the bestquarter this year, after reports showing deflation in Japan andshrinking output in South Korea raised speculation governmentswill do more to spur growth. Spain has pledged to meet a deficittarget, spurring prospects it will qualify for an internationalrescue that will help to stem Europe’s debt crisis.

“Rubber chased a rally in oil and stocks as concerns easedover the European crisis and speculation grew for additionalstimulus,” Kazuhiko Saito, an analyst at broker Fujitomi Co. inTokyo, said today by phone.

Japan’s consumer prices in August matched the steepestdecline in 16 months, and the nation’s industrial productionfell more than economists forecast, while output in South Koreadropped for a third month, according to data released today.

Thai rubber exporters that ship more than 5,000 tons a yearare required to cut some cargoes to fall into line with thegovernment’s commitment to limiting the country’s supplies,according to a statement from the farm ministry today. Thailandhas agreed with Indonesia and Malaysia to cut exports by a totalof 140,000 tons, starting from Oct. 1, to try to buoy prices.

January-delivery rubber jumped 3.8 percent to close at25,000 yuan ($3,976) a ton on the Shanghai Futures Exchange,gaining 8.4 percent this quarter. Thai rubber free-on-boardincreased 1 percent to 97.65 baht ($3.17) a kilogram today,Rubber Research Institute of Thailand data show.