By Aya Takada Feb. 1 (Bloomberg) -- Rubber gained for the first time in seven days as a drop in the Japanese currency boosted the appeal of the yen-based contracts and rising car sales stoked speculation demand will grow for the commodity used in tires. Futures in Tokyo rose as much as 1.4 percent. Prices fell 5.2 percent last week, the worst performance since the week ended Dec. 11, amid concern the U.S. and China may move to curb economic stimulus measures. The market rose as the yen dropped against the dollar after data showed Jan. 29 that the U.S. economy grew at the fastest pace in six years last quarter. It was also supported today by data showing that Japanese auto sales posted the sixth straight increase in January, said Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo. “A weak yen provided the largest support to the price of futures,” Shigemoto said today by phone. Rubber for July delivery gained as much as 3.8 yen to 278.1 yen per kilogram ($3,082 a metric ton) before settling at 275.4 yen on the Tokyo Commodity Exchange. The yen traded at 90.24 per dollar at 3:44 a.m. in Tokyo after reaching a one-week low of 90.93 on Jan. 29. The U.S. currency climbed after data from the U.S. Commerce Department showed gross domestic product grew at a 5.7 percent annual pace last quarter, the fastest pace in six years and topping economist estimates. Sales of cars, trucks and buses, excluding minicars, rose 37 percent from a year earlier to 238,362 vehicles in January, the Japan Automobile Dealers Association said in a statement today. Toyota Motor Corp. boosted sales to 117,154 vehicles, excluding Lexus-brand cars. The company’s recent recalls of vehicles for faulty accelerator pedals don’t include models sold in Japan. Auto Recovery Japan’s auto sales began recovering from a yearlong slide in August as government rebates and tax cuts for fuel-efficient vehicles helped rekindle demand. The incentives helped raise sales by about 600,000 vehicles last year and may increase them by about 900,000 this year, the Japan Automobile Manufacturers Association said on Dec. 24. May-delivery rubber on the Shanghai Futures Exchange ended little changed at 23,000 yuan ($3,369) a ton. Prices earlier slumped to 22,250 yuan, the lowest level since Dec. 16. “Futures in Shanghai were earlier dragged down by speculation that China may take more steps to curb economic growth,” Shigemoto said. Chinese banks have begun restricting new loans, responding to a push by regulators to contain credit and curb the economic expansion. Rubber inventories plunged 9,881 tons to 141,951 tons, the Shanghai exchange said on Jan. 29, based on a survey of 10 warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin. To contact the reporters on this story: Aya Takada in Tokyo at atakada2@bloomberg.net

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