TOKYO: Japanese rubber futures hit their highest level in nearly 12 years on Wednesday after a Reuters survey indicated that China’s economy is set to rebound sharply in 2021 from a slump caused by the Covid-19 pandemic.

Osaka Exchange’s rubber contract for April delivery finished up 20.1 yen, or 7.9%, at 274.3 yen per kg, the highest close March 2017 and the biggest percentage gain since December 2008.

Rubber prices have been on the upswing recently, with the Osaka Exchange’s contract gaining nearly 40% over the last nine days, as a recovery builds in the world’s second-largest economy and the biggest rubber consumer amid tighter supplies.

The rubber contract on the Shanghai futures exchange for January delivery rose 6% to finish at 16,535 yuan per tonne, its highest in at least three years.—Reuters