Tokyo Commodity Exchange (TOCOM) futures plunged more than 6% on Monday, marking their biggest daily loss in two years, as fears over the economic impact of the coronavirus epidemic and a crash in oil prices battered financial markets globally.
TOCOM's rubber contract for August delivery finished 10.5 yen, or 6.2%, lower at 157.8 yen ($1.55) per kg, after sinking to the lowest since Oct. 8, 2019 of 156.5 yen earlier in the session. It also logged the steepest one-day drop since March 23, 2018.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 645 yuan to finish at 10,290 yuan ($1,482) per tonne. It dropped to 10,165 yuan earlier in the session, the lowest since August 3, 2018.
"Tumbling share prices in New York and Tokyo raised concerns over economic slowdown worldwide, prompting a flurry of selling in the TOCOM," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co. "A slump in oil prices also added to pressure," he added. The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 125.6 US cents per kg, down 3.2%.
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