Tokyo futures hit 14-month low on EU debt woes

BANGKOK: Renewed worries about Europe's debt crisis dragged Tokyo rubber futures to their lowest level in 14 months on Thursday, below the key psychological level of 300 yen, with weaker oil and share prices adding to the pressure, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for March delivery tumbled 20.0 yen, or 6.6 percent, to settle at 281.5 yen ($3.66) per kg. That was the lowest since mid-August 2010.

The most active rubber contract on the Shanghai futures exchange fell 1,170 yuan to finish at 25,445 yuan ($3,989) per tonne.

"Rubber sentiment was not so good after prices broke below 300 yen and it seemed like Europe's debt crisis could weigh on the market longer than expected," one dealer said.

Plans to tackle the euro zone debt crisis have stalled, with Paris and Berlin at odds over how to increase the firepower of the region's bailout fund.

Brent crude slipped below $108 on Thursday, after plunging 2.5 percent in the previous session because of worries that Europe's failure to end the crisis could hurt oil demand.

Copyright Reuters, 2011