Rubber falls as China’s Manufacturing Index declines more than forecast

Rubber declined almost to a six-week low after data showed manufacturing in China, the world’s largest consumer, fell more than economists forecast and as a slump in silver spurred selling of industrial commodities. The October-delivery contract lost as much as 3.7 percent to 374.6 yen a kilogram ($4,615 a metric ton) on the Tokyo Commodity Exchange, before paring losses to settle at 386.8 yen as the U.S. dollar advanced against the Japanese currency after President Barack Obama said al-Qaeda leader Osama bin Laden had been killed.

The Purchasing Managers’ Index fell to 52.9 in April from 53.4 in March, China’s logistics federation and the statistics bureau. The drop indicated that growth may moderate in the world’s second-biggest economy after the government raised rates and allowed faster gains in the Yuan.