Rubber declined from a one-week high, paring the first weekly advance in three, as concerns grew that a slowdown in global economies will curb raw-material demand.
Rubber for March delivery dropped as much as 0.9 percent to 258 yen a kilogram ($3,219 a metric ton) before trading at 258.4 yen on the Tokyo Commodity Exchange at 11:59 a.m. It earlier advanced to 262.5 yen, the highest level for the most-active contract since Oct. 19, and has increased 1.1 percent this week.
Gross domestic product expanded 1.6 percent in the three months through September from a year earlier, the slowest pace since 2009, Bank of Korea data showed today, adding to signs that Europe’s debt crisis decelerates growth in emerging markets. Asian stocks and U.S. equity futures fell as China Unicom (Hong Kong) Ltd. and Apple Inc. joined companies posting results that missed analysts’ estimates.
“Concerns about a global slowdown put a drag on the market,” said Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo.
Losses in futures were limited by speculation the Bank of Japan may ease monetary policy to stem a rally in the nation’s currency, raising the appeal of yen-based contracts, he said.
The yen touched a four-month low against the dollar, heading for its biggest weekly drop in two months. A report showing Japan’s consumer prices declined for a fifth month added to prospects the central bank will expand monetary easing next week. The Nikkei newspaper reported the Bank of Japan will consider increasing its asset-purchase program by 10 trillion yen to 90 trillion yen.
Rubber for January delivery lost 0.9 percent to 24,660 yuan ($3,953) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board rose 0.3 percent to 93.80 baht ($3.06) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Rains spread across 70 percent of Thailand’s south, disrupting tapping, according to the institute. The southern region accounts for 80 percent of the country’s supplies.
Source: Bloomberg
