TOKYO, Oct 30 (Reuters) – Benchmark Tokyo rubber futures closed down 1.9 percent on Tuesday, after widely expected easing from Japan’s central bank sent the yen higher and pushed down shares.
The Bank of Japan eased monetary policy by increasing the size of its asset buying and lending programme by $138 billion, largely as expected. [ID:ID:nL3E8LT9C6]
But many economists say the BOJ’s move would have little direct effect of stimulating the economy, with markets already awash with extra cash.
The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for April delivery fell 4.8 yen to settle at 253.4 yen ($3.17) per kg. The contract on Monday hit a 10-day intraday high of 264.5 yen.
“The BOJ’s disappointing announcement sent the yen higher and stocks lower, which put the rubber market under selling pressure,” said a Tokyo-based broker, who declined to be named.
Market participants were also focused on strong storm Sandy, which pounded the U.S. east coast on Tuesday, flooding large parts of New York City, bringing transport to a halt and interrupting the presidential campaign.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 115 yuan, or 0.5 percent, to finish at 24,500 yuan ($3,900) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 281.50 U.S. cents per kg, down 4.8 cents, or 1.7 percent.
($1 = 79.8150 Japanese yen)
($1 = 6.2436 Chinese yuan)
(Reporting by Osamu Tsukimori; Editing by Joseph Radford)
Source: Reuters
