The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery fell to a near one-week low on Thursday, tracking a slide in Shanghai futures and as investors booked profits after the recent rally.
The benchmark was down 4.4 yen, or 2.2%, at 195.1 yen ($1.80) per kg, as of 0104 GMT, after hitting its lowest since last Friday of 194.5 yen earlier in the session.
Key Shanghai futures ended overnight trading down 2.1% at 12,885 yuan ($1,831) per tonne. As part of state efforts to stimulate growth in the world's biggest consumer of rubber, China's central bank lowered the interest rate on 14-day reverse repurchase agreements on Wednesday, in step with a similar cut in the 7-day repo rate last month. Japan's benchmark Nikkei stock average was almost flat on Thursday after Wall Street paused a record-setting rally the previous day as investors' optimism about global economic growth was countered by a steep drop in FedEx Corp shares.
Oil prices steadied on Wednesday after US government data showed a decline in crude inventories and on expectations for an uptick in demand next year on the back of progress in resolving the US-China trade fight.
Fiat Chrysler and Peugeot maker PSA face the challenge of winning over regulators and delivering on a pledge to slash costs without closing factories after sealing a binding deal to create the world's fourth biggest carmaker.
The front-month rubber contract on Singapore's SICOM exchange for January delivery was at 143.5 US cents per kg on Thursday, down 1.3% from the previous session.
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