Monday, 16 November 2015 18:29
TOKYO: Benchmark Tokyo rubber futures slid on Monday, dragged down by slumping Tokyo share prices and a stronger yen after suspected Islamist militants launched coordinated attacks across Paris that killed more than 130 people late last week.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished 3.7 yen lower at 156.1 yen ($ 1.27) per kg.
French police raided homes of suspected Islamist militants across the country overnight in the aftermath of the Paris shootings, French Prime Minister Manuel Valls said on Monday as he warned of potential further attacks.
“The market took a beating by falling Nikkei stock index and a yen’s rise in the wake of the Paris attack,” said Hiroyuki Kikukawa, general manager at Nihon Unicom Inc.
“It raised worries among investors over slowing global economy and weaker demand for commodities,” he said.
Tokyo stocks fell in thin trade to the lowest in more than a week on Monday, with exporters, airline and travel agency stocks all hit by reduce appetite for risk following the deadly Islamist militant attacks in Paris.
The dollar slipped against the yen to as low as 122.23 , its lowest in 10 days and last stood at 122.53 yen, compared with 122.62 yen at the end of last week.
The yen showed muted response to data that showed Japan’s GDP slipped more than expected in July-September, the second consecutive quarter of economic contraction.
“If the stock market continues to decline, rubber prices may head toward a 6-year low hit earlier this month,” Kikukawa said.
The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, dove to a low of 153.0 on Nov. 6, the lowest since July 2009.
The most-active rubber contract on the Shanghai futures exchange for January delivery tumbled 310 yuan to finish at 10,520 yuan ($ 1,651.49) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 117.1 U.S. cents per kg, down 2.8 cent.
