TOKYO: Japanese rubber futures rose on Tuesday, closing at a fresh seven-month high, as more signs of a recovery in factory demand emerged out of China, the biggest consumer of the commodity.

The Osaka Exchange rubber contract for February delivery, ended 2.3 yen, or 1.1%, higher at 196.7 yen per kg. The contract closed at a seven-month high on Tuesday, having gained nearly 20% in August.

Manufacturing activity in China expanded at the fastest clip in nearly a decade in August, as factories ramped up output to meet rebounding demand, a private survey showed. New export orders rose for the first time this year.

The rubber contract on the Shanghai futures exchange for January delivery ended up 40 yuan, or 0.3%, at 12,820 yuan per tonne.-Reuters