Rubber extended losses for a third day as a sell-off in Asian stocks raised concern that regional demand may weaken for the commodity used in tires.
Rubber for delivery in January on Tokyo Commodity Exchange dropped as much as 1.1 percent to 257.9 yen a kilogram ($2,652 a metric ton), the lowest level for a most-active contract since Aug. 9. Futures traded at 259.6 yen at 12:03 p.m. and have lost 14 percent this year.
Asia’s benchmark stock index fell for a fifth day to trade at the lowest level in six weeks. Emerging market stocks were roiled this week amid speculation capital outflows will accelerate as the Federal Reserve is expected to curb bond-buying.
“A sell-off in Asian stocks sapped investor appetite for rubber futures,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo.
Investors will be watching the release of the Federal Open Market Committee’s July meeting minutes today for hints as to when the stimulus may be curbed.
Rubber for delivery in January was little changed at 19,485 yuan ($3,182) a ton on the Shanghai Futures Exchange.
Thai rubber free-on-board dropped 0.6 percent to 81.25 baht ($2.56) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Source: Bloomberg
