TOKYO: Benchmark Tokyo rubber futures slid for the fourth straight session on Tuesday, hitting a fresh 26-month low, as plunging Shanghai futures and a firmer yen against the U.S. dollar dampened market sentiment.
"Falling offer prices of physical supply in Thailand and weakening Shanghai futures amid worries over slowing demand were behind the TOCOM losses," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
The Tokyo Commodity Exchange (TOCOM) rubber contract for April delivery finished 1.2 percent lower at 153.6 yen ($1.37) per kg.
The TOCOM benchmark, which sets the tone for rubber prices in Southeast Asia, hit its lowest level since Sept. 13, 2016 of 153.0 yen earlier in the session.
The most-active rubber contract on the Shanghai futures exchange for January delivery slumped 270 yuan to finish at 10,885 yuan per tonne. It earlier fell to as low as 10,755 yuan, the lowest since Aug. 3.
"External factors such as tumbling Nikkei stock index also weighed on the investor sentiment," Tazawa said.
Japan's Nikkei slipped 1.1 percent on Tuesday, with shares of Nissan Motor Co tumbling more than 5 percent after its Chairman Carlos Ghosn was arrested on Monday for alleged financial misconduct.
"Rubber prices across Asia are heading lower and this trend may continue," Tazawa said.
TOCOM's technically specified rubber (TSR) 20 futures contract for May delivery fell 1.3 percent to close at 139.4 yen per kg.
The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 121.8 U.S. cents per kg, down 1.1 cent.
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