TOKYO (Oct 5): Benchmark Tokyo rubber futures slipped on Thursday, snapping three sessions of gains, as investors adjusted positions in thin trade ahead of key US jobs data on Friday, a three-day weekend in Japan, and the return of Chinese investors on Monday from a week-long holiday.
The Tokyo Commodity Exchange (TOCOM) rubber contract for March delivery finished 0.5 yen, or 0.2%, lower at 208.0 yen (US$1.85) per kg.
Chinese markets are closed for the week-long National Day holiday which started on Sunday. Japanese markets will be closed on Monday for a public holiday.
“Investors were making position adjustments ahead of the long weekend, while a pause in the dollar’s gain against the yen weighed on market sentiment,” said Jiong Gu, an analyst with Yutaka Shoji Co.
After touching 112.92 yen early in the day, the US dollar was effectively flat at around 112.60.
A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
“I expect Tokyo rubber prices to weaken further on Friday as they tend to return to where they were during the China’s week-long holiday,” Gu said.
The TOCOM benchmark closed at 201.8 yen per kg last Friday.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 149.4 US cents per kg, down 0.3 cents.
(US$1 = 112.5800 yen)
