TOKYO (March 8): Benchmark Tokyo rubber futures cut losses from earlier in the day to end almost unchanged on Thursday, as Japanese shares found relief on hopes certain key partners could be exempt from planned tariffs on US imports.
US President Donald Trump plans to offer Canada and Mexico a 30-day exemption from planned tariffs on steel and aluminium imports, which could be extended based on progress in NAFTA talks, a White House official said late on Wednesday.
The Nikkei stock average bounced back on Thursday on the prospect that the impending tariffs would be milder than previously thought, but the market pared gains as caution ruled ahead of the formal announcement from Washington.
The Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery finished 0.1 yen lower at 191.7 yen (US$1.81) per kg, after hitting a 1-week low of 189.2 yen earlier in the session.
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“The TOCOM rubber prices have been swayed by moves in external markets such as equities and currencies,” said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
The US dollar was steady at 106.04 yen on Thursday after slipping to as low as 105.45 the previous day in reaction to the departure of Gary Cohn, the top economic advisor to the White House, who was seen as a bulwark against protectionism in Trump’s administration.
“Even with some exemptions, any tariffs to be imposed by the US government and possible retaliation by other countries would be negative for commodities as they would reduce global flow,” he said.
The most-active rubber contract on the Shanghai futures exchange for May delivery rose 25 yuan to finish at 12,910 yuan (US$2,039) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 146.2 US cents per kg, down 0.4 cent.
(US$1 = 6.3320 Chinese yuan)
(US$1 = 105.9300 yen)
