TOKYO, Feb 10 (Reuters) – Benchmark Tokyo rubber futures fell for the fourth straight session on Wednesday, hovering near seven-year low, as investors stepped up selling after Japan’s Nikkei index extended losses and the yen stayed near a 15-month high. The Tokyo Commodity Exchange rubber contract for July delivery JRUc6 0#2JRU: finished down 0.3 yen lower at 147.1 yen ($1.28) per kg after falling to as much as 145.5 yen, close to a 7-year low of 144.5 yen hit last month. “The market remained under pressure as stock market continued to decline and the yen stayed firm,” said Satoru Yoshida, commodity analyst, Rakuten Securities.
Nikkei share average (XC0009692440) stumbled 2.3 percent on Wednesday, closing at its lowest level since October 2014, as worries about the health of global banks and economic growth intensified. .N The dollar fell 0.3 percent against the yen to 114.63 JPY= , close to a 15-month low of 114.05 hit the previous day, on growing concerns about the state of world’s banks, particularly in Europe, which pushed investors into safer assets such as the yen. MKTS/GLOB A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
“The market sentiment has become very gloomy as global financial markets look to be in a crisis and the U.S. economy is showing signs of weakness,” he said, predicting the TOCOM benchmark to drop below a key resistance of 144.5 yen and hit a fresh 7-year low. The front-month rubber contract on Singapore’s SICOM exchange for March delivery STFc1 last traded at 106.5 U.S. cents per kg, down 2.2 cent. Chinese markets were closed for the Lunar New Year holiday.
They will reopen next Monday. Japanese markets will be also shut on Thursday for a national holiday.
($1 = 114.8300 yen)
(Reporting by Yuka Obayashi; Editing by Sherry Jacob-Phillips)
