TOKYO: Key Tokyo rubber futures inched lower on Wednesday despite a weaker yen and a rise in oil and other commodities, as investors grew cautious about the recent rapid pace of price increases and closed positions.
The key Tokyo Commodity Exchange rubber contract for September delivery settled at 457.9 yen per kg, down 0.2 yen from Tuesday's settlement of 458.1 yen. It rose as high as 464.9 yen in early trade, just below Tuesday's high of 466.8 yen, its highest since March 7.
The Shanghai rubber market resumed trading after a two-day holiday earlier this week. The most active Shanghai rubber contract for September delivery rose 1,305 yuan to close at 35,940 yuan ($5,494) per tonne on Wednesday. Volume stood at 597,070 lots. Brent crude edged down to $122 a barrel on Wednesday, but prices stayed within a dollar of a 2-1/2 year peak as widespread unrest in the Middle East and North Africa raised worries over supply. The yen extended losses on Wednesday, hitting an 11-month trough against the euro and a six-month low against the dollar with more weakness in store as investors such as macro hedge funds add to bearish bets. Toyota Motor Corp will begin making two more car models on April 11, taking another small step towards normalising operations after a massive earthquake in Japan disrupted its supply chain and forced most of its factories to halt work.
China's central bank increased interest rates on Tuesday for the fourth time since October, raising suspicions that data next week may show inflation rose more than expected in March.
Japan stopped highly radioactive water leaking into the sea on Wednesday from a crippled nuclear plant and acknowledged it could have given more information to neighbouring countries about contamination in the ocean.
Japan's Nikkei stock average fell to a one-week closing low, losing ground for a second straight day on Wednesday as concerns grew about mounting production losses for quake-hit manufacturers.
Comments
Comments are closed for this article.