Key Tokyo futures settled down 2.7 percent on Monday after sliding as far as 3 percent, as falls in oil and shares dampened market sentiment, with some investors bracing for a further decline below key support at 300 yen. The key Tokyo Commodity Exchange rubber contract for March delivery settled down 8.2 yen at 302.6 yen per kg, well below its 25 day moving-average at 350 yen.
Tokyo rubber futures posted their worst monthly decline in nearly three years in September on worries about the health of the global economy. "With Chinese buyers away, sentiment is weak and investors are tending to focus on problems in the global economy," said Naoki Asami, chief broker at trading house Kanetsu. "The market may try last week's low of 289.5 yen again, although a narrower band for the circuit-breaker may help to curb volatility to a certain extent."
The exchange said last week it would halve the price width of its circuit-breaker for rubber futures to 5 yen from 10 yen from Monday to help limit market volatility. Markets in China were closed this week for the Golden Week national holiday, putting pressure on Tokyo rubber futures.
Comments
Comments are closed for this article.