Cotton futures jumped to a two month-high on speculation that better-than-expected economic data in China, the U.S. and Germany signals higher demand for raw materials.

Global equities rallied after gross domestic product in China, the worldΆs second-largest economy, grew 8.9 percent in the fourth quarter, above the median in a Bloomberg News survey. A U.S. Federal Reserve report showed manufacturing in the New York region increased at the fastest pace in nine months, and German investor confidence rose by a record.

“It is definitely a ΅risk-onΆ trading day for the speculators,” Mike Stevens, an independent trader in Mandeville, Louisiana, said in an e-mail. “Positive economic news coming out of China” and “strong outside markets,” triggered the rally, he said.

Cotton for March delivery rose 2.8 percent to settle at 98.19 cents a pound on ICE Futures U.S. Earlier, the price gained as much as 4 cents, the exchange limit, to 99.47 cents, the highest for a most-active contract since Nov. 17. The price has gained 7 percent this month.

The dollar fell as much as 0.9 percent today against a basket of six currencies, enhancing the appeal of commodities as alternative investments, Stevens said.

China is the worldΆs top cotton consumer, and the U.S. is the biggest exporter.