TOKYO (March 31): Benchmark Tokyo rubber futures fell on Thursday, dragged down by a drop in oil prices and weaker Tokyo stock market, while investors waited for a survey on China’s manufacturing activity and US job data, due on Friday.
The Tokyo Commodity Exchange (TOCOM) rubber contract for September delivery <0#2JRU:> finished 1.0 yen lower at 176.5 yen (US$1.57) per kg.
Oil futures fell in Asian trade on Thursday, with US crude hitting its lowest level in more than two weeks as the country’s crude stocks reached yet another record high, renewing concerns about global oversupply.
Japan’s Nikkei fell in choppy trade on Thursday to a near two-week low as a stronger yen trimmed the profit outlook for exporters, while investors stayed on the sidelines on the final day of Japan’s financial year looking for more catalysts ahead.
“Selling pressure tend to increase as the benchmark goes closer to 180 yen, but the market’s downside is also limited,” said Toshitaka Tazawa, an analyst at Fujitomi Co.
“If China data on Friday comes weak and adds to pressure to Shanghai futures, TOCOM may also lose further ground,” he added.
The most-active rubber contract on the Shanghai futures exchange for September delivery rose 10 yuan to finish at 11,370 yuan (US$1,759.03) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for April delivery last traded at 130.5 US cents per kg, up 0.4 US cent.
(US$1 = 112.3100 yen)
(US$1 = 6.4638 Chinese yuan)
