TOKYO, Nov 12 (Reuters) – Key TOCOM rubber futures fell as much as 1.9 percent to a two-month low on Monday as poor economic data in China as well as Japan highlighted a slowdown in the global economy and prospects of sluggish demand.
The key Tokyo Commodity Exchange rubber contract for April delivery ended down 0.9 percent, or 2.1 yen, at 244.3 yen per kg. The benchmark contract fell as low as 241.8 yen, the lowest since Sept. 14.
“A steep decline in China’s imports of natural rubber in October is a clear indication of sluggish demand. We expect demand to continue weak for a while, reflecting a slowdown of the economy,” a trader said.
China’s imports of natural rubber in October plunged 22.7 percent from a year earlier to 170,000 tonnes. That was down 19 percent from the previous month, according to China’s preliminary customs data released on Saturday.
Japan’s economy, meanwhile, shrank in the September quarter for the first time since last year, adding to signs that slowing global growth and tensions with China are nudging the world’s third-largest economy into recession.
The most active Shanghai rubber contract for May delivery closed down 0.1 percent at 23,965 yuan per tonne.
The front-month December rubber contract on the SICOM in Singapore was last traded at 273.5 cents per kg, down 1 percent.
Japan’s Nikkei stock average fell for a sixth straight day and closed at a four-week low on Monday, hurt by a strong yen and worries about a possible U.S. fiscal crisis that may push the world’s largest economy into recession.
The dollar bought 79.48 yen, down slightly from late North American levels on Friday, when it fell as low as 79.07 yen, its weakest since Oct. 18.
Brent oil slipped below $109 per barrel on Monday as worries about a looming fiscal calamity in top consumer the United States renewed fears of a further slowdown in oil demand growth.
(Reporting by Yuko Inoue; Editing by Subhranshu Sahu)
Source: Reuters
