TOKYO (April 11): Benchmark Tokyo rubber futures ended down on Tuesday as the market came under pressure from extended declines in Shanghai futures and a stronger yen against the dollar, which makes Japanese currency-denominated assets more expensive when purchased in other currencies.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, declined 4.2%. Earlier in the session, it hit 228.3 yen, the lowest since Dec 2.
"Amid thin TOCOM trade, some participants seemed to have made big moves in rubber as other markets barely made any move," said a Tokyo-based broker. "The higher yen also put the pressure on the market."
The Tokyo Commodity Exchange rubber contract for September delivery finished down 10.1 yen at 229.3 yen (US$2.07) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery dropped for a fourth straight session, shedding 180 yuan to finish at 15,410 yuan (US$2,233) per tonne, after hitting a five-month low early in the day.
The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 166.10 US cents per kg, down 0.6 US cents.
(US$1 = 110.5200 yen)
(US$1 = 6.9021 Chinese yuan)