By Aya Takada Sept. 6 (Bloomberg) -- Rubber increased after a report showed U.S. companies added more jobs than forecast last month, easing concern that recovery in the world’s largest economy may falter, curbing raw-material demand. Futures in Tokyo gained as much as 0.8 percent after dropping last week by 0.3 percent, the first loss in three weeks. The price also advanced as Japan’s currency retreated against the dollar, raising the appeal of yen-based contracts. Investor appetite for riskier assets increased as U.S. private payrolls climbed by 67,000 in August, more than the median forecast for an increase of 40,000 in a Bloomberg survey of economists. President Barack Obama this week will urge Congress to permanently extend and expand a research-and- development tax credit to encourage job growth. “U.S. jobs data and expectations for Obama’s additional economic measures gave support to equities and commodities markets,” Kazuhiko Saito, an analyst at Tokyo-based broker Fujitomi Co., said today by phone. February-delivery rubber increased as much as 2.3 yen to 300.3 yen per kilogram ($3,560 a metric ton) before trading at 300.2 yen on the Tokyo Commodity Exchange at 11:44 a.m. Asian stocks extended a global rally as jobs data in the U.S. eased concern that economic growth is faltering. The MSCI Asia Pacific Index advanced 0.9 percent to 121.10, the highest level in four weeks. The yen declined to 84.38 per dollar from 84.31 in New York. Obama will lay out the tax proposal, which would cost about $100 billion over the next decade, in a Sept. 8 speech on the economy in Cleveland, Ohio, according to two administration officials speaking on condition of anonymity before the announcement. Oil Drops Gains in rubber futures were limited as oil declined for a second day, reducing the cost of making rival synthetic products used in tires. The October contract lost as much as 51 cents, or 0.7 percent, to $74.09 a barrel in electronic trading on the New York Mercantile Exchange, and was at $74.24 at 11:52 a.m. January-delivery rubber on the Shanghai Futures Exchange climbed to 26,480 yuan ($3,901) a ton, the highest level since July 2008, before trading at 26,425 yuan. The price extended gains for a fourth day as accelerated growth in Chinese car sales raised the demand outlook. Retail deliveries of cars, sport-utility vehicles and multipurpose vehicles expanded 59 percent last month from a year earlier to 977,300, according to the China Automotive Technology & Research Center. The pace of growth expanded from 15.4 percent in July as incentives by dealers outweighed government measures to cool the economy. Natural-rubber inventories expanded 1,119 tons to 25,820 tons, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin, the bourse said Sept. 3. To contact the reporter on this story: Aya Takada in Tokyo at atakada2@bloomberg.net

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