TOKYO, Sept 18 (Reuters) – Benchmark Tokyo rubber futures slumped on Friday, booking a weekly loss of 3.7 percent, after the U.S.central bank’s decision to keep interest rates on hold clouded the global economic outlook and as weaker shares in Tokyo battered market sentiment.
The Tokyo Commodity Exchange (TOCOM) rubber contract for February delivery finished 4.9 yen, or 2.8 percent, lower at 171.3 yen ($1.44) per kg. The Fed kept rates unchanged on Thursday in a bow to worries about the global economy, financial market volatility and sluggish inflation at home, but left open the possibility of a modest policy tightening later this year.
“The falling Nikkei index fuelled fears about the slowing economy after the Fed delayed a rate hike,” Fujitomi analyst Toshitaka Tazawa said. Japanese stocks snapped a three-day winning streak on Friday after the Fed kept rates at a record low, raising worries about the health of both the U.S.and global economies.
Investors were also trying to adjust positions ahead of next week’s Japanese national holiday, which will keep markets closed until Thursday. “All eyes will be on China again next week, especially on its economic indicators and stock prices,” Tazawa said.
“The TOCOM prices are expected to stay volatile along with other commodities,” he added. The most-active rubber contract on the Shanghai futures exchange, for January delivery SNRcv1 , fell 180 yuan to finish at 11,555 yuan ($1,816.02) a tonne. The front-month contract on Singapore’s SICOM exchange for October delivery last traded unchanged at 125.8 U.S.cents per kg.
($1 = 119.2100 yen)
a($1 = 6.3628 Chinese yuan renminbi)
(Reporting by Yuka Obayashi; Editing by David Goodman)
