TOKYO: Key TOCOM rubber futures posted their biggest daily gain since early December on Tuesday helped by expectations that the Thai government may intervene in the market to lift prices while better than expected news on China's economy fuelled hopes for steady growth in demand.
The bellwhether Tokyo Commodity Exchange rubber contract for June delivery settled up 3.8 percent or 10.7 yen at 291 yen ($3.79) per kg, the highest since Dec 8.
The most active contract in Shanghai for May delivery jumped to a level close to its limit up, adding 4.3 percent to 26,680 yuan ($4,200) per tonne, before closing at 26,250 yuan, up 2.6 percent.
"Speculation that the Thai government may step into the market to lift prices and China's economic expansion announced this morning boosted the market," said a trader.
"The market has bottomed out and the benchmark contract will likely rise as high as 300 yen."
Top producer Thailand's National Rubber Committee, which consists of ministers and government officials, met on Tuesday to ratify a government intervention plan to buy up to 200,000 tonnes of USS3 to push the price up to 120 baht ($3.70).
Asian shares, the euro, base metals and gold all rose as markets viewed the Chinese data as a sign the growth momentum in the world's second-biggest economy was intact.
China's economy grew at its weakest pace in 2-1/2 years in the fourth quarter as gross domestic product slowed to an annual rate of 8.9 percent, the National Bureau of Statistics said on Tuesday.
The reading came in above market expectations for growth of 8.7 percent, however.
Japan's Nikkei average gained on Tuesday and closed above a key resistance level after the better-than-expected Chinese data and solid demand at a French treasury bill auction reassured investors in the wake of massive European ratings downgrades.
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