TOKYO (March 2): Benchmark Tokyo rubber futures extended declines on Friday as the market came under pressure from a stronger yen and weaker Japanese equities and Shanghai futures.
Japan’s Nikkei share average fell to a 2½-week low on Friday, with steelmakers and automakers taking a battering after President Donald Trump said the United States would impose import tariffs on steel and aluminum.
The yen surged against the dollar on Friday after Bank of Japan Governor Haruhiko Kuroda said the central bank will consider an exit from its ultra-easy monetary policy if its inflation target is achieved in the year ending in March.
A stronger Japanese currency makes yen-denominated assets less affordable when purchased in other currencies.
“Rubber fell as the market was influenced by a decline in Japanese stock market and a stronger yen, as well as weaker Shanghai futures,” said a Tokyo-based broker.
The Tokyo Commodity Exchange rubber contract for August delivery finished 1 yen lower at 191.5 yen (US$1.81) per kg. For the week, it rose 1.5%, marking a second straight weekly gain.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 55 yuan to finish at 12,950 yuan (US$2,040) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 147.70 US cents per kg, down 0.4 cent.
(US$1 = 105.8600 yen)
(US$1 = 6.3496 Chinese yuan)
