TOKYO (Sept 26): Benchmark Tokyo rubber futures dropped on Wednesday, weighed down by lingering fears that a potential US import tariff on Japanese automobiles may hurt demand of cars and tyres.
“There were no fresh incentives to buy today, with investors closely watching the development of Japan-US trade talks which could affect car exports from Japan,” said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
Japan and the United States have reached a broad understanding over how to promote bilateral trade and may announce specifics on Wednesday, Economy Minister Toshimitsu Motegi was quoted as saying after meeting US Trade Representative Robert Lighthizer.
Japan is mulling a bilateral trade agreement with the United States that would lower tariffs on US agriculture imports in exchange for avoiding higher tariffs on Japanese autos, the Nikkei newspaper said on Saturday.
The Tokyo Commodity Exchange (TOCOM) rubber contract for March delivery finished 0.9 yen, or 0.5%, lower at 169.0 yen (US$1.5) per kg.
The most-active rubber contract on the Shanghai futures exchange for January delivery closed 10 yuan higher at 12,505 yuan (US$1,818.57) per tonne.
The TOCOM benchmark, which sets the tone for rubber prices in Southeast Asia, is expected to stay in a tight range of around 165-170 yen per kg for the time being, Tazawa said.
The front-month rubber contract on Singapore’s SICOM exchange for October delivery last traded at 133.1 US cents per kg, unchanged from the previous day.
(US$1 = 112.8000 yen)
(US$1 = 6.8763 Chinese yuan)
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