TOKYO (April 6): Benchmark Tokyo rubber futures slid on Thursday, surrendering some of their sharp gains from the previous session, as weaker Shanghai futures and softer oil prices prompted some profit-taking.
"Some investors were making position adjustments amid concerns over the US-China summit," said a Tokyo-based dealer.
Regional tensions have risen after North Korea test-fired a ballistic missile on Wednesday, just a day before a summit between US President Donald Trump and Chinese President Xi Jinping, where North Korea's arms development drive will take centre stage.
The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery finished 2.0 yen lower at 248.7 yen (US$2.25) per kg, after jumping nearly 6% the previous day.
But the near-term April contract rose 6.5 yen to end at 306.5 yen per kg on concerns over low inventories at the TOCOM-approved warehouses which hit a 6½-year low in early March.
The most-active rubber contract on the Shanghai Futures Exchange for September delivery fell 55 yuan to finish at 16,815 yuan (US$2,437) per tonne.
On further downside, oil prices fell on Thursday as record US crude inventories underscored that markets remain bloated, although traders said there were signs that other regions were gradually tightening.
The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 182.8 US cents per kg, down 2.0 US cents.
(US$1 = 110.7300 yen)
(US$1 = 6.8990 Chinese yuan)