TOKYO, Feb 5 (Reuters) – Benchmark Tokyo rubber futuresclosed 1.2 percent lower on Thursday, marking the first declinein four sessions as steep falls in crude oil prompted someprofit-taking following gains of more than 6 percent in the pastthree sessions.
The Tokyo Commodity Exchange (TOCOM) rubber contract forJuly delivery finished 2.5 yen lower at 206.4yen per kg, after gaining 6.5 percent in the past threesessions.
The losses were limited after China took steps to pour freshliquidity into the world’s second-biggest economy to spuractivity.
TOCOM futures, which set the tone for tyre rubber prices inSoutheast Asia, touched a four-week high on Wednesday, closingin on early January’s six-month high, which it touched onworries over lower production in flood-hit Malaysia andThailand.
“Crude fell last night and we were in profit-taking mode,”said a source with a Tokyo-based broker. “Contracts for Februarythrough April delivery remained relatively firm compared withthe benchmark July contract.”
Brent crude prices extended declines on Thursday afterposting a 6.5 percent decline in the previous session, hurt by arebound in the dollar.
The U.S. dollar was quoted around 117.13 yen,compared with 117.63 yen on Wednesday afternoon.
The most-active rubber contract on the Shanghai futuresexchange for May delivery fell 260 yuan to finish at13,325 yuan per tonne.
The front-month rubber contract on Singapore’s SICOMexchange for March delivery last traded at 138 U.S.cents per kg, down 2.5 cents. (Reporting by Osamu Tsukimori; Editing by Biju Dwarakanath)
