Tokyo futures at 2-week low on oil, EU debt

BANGKOK: Tokyo rubber tumbled nearly 4 percent to a two-week low in a broad selloff on Wednesday weighed by weaker oil prices and persistent concerns over the euro zone debt crisis, dealers said.

The benchmark rubber contract on the Tokyo Commodity Exchange for March delivery fell 11.7 yen to settle at 301.5 yen ($3.92)per kg.

It fell as low as 3.9 percent to 301.0 yen, the lowest since October 6.

The most-active Shanghai rubber contract for January delivery fell 685 yuan to finish at 26,615 yuan ($4,170) per tonne.

"Fears on Europe debt triggered heavy sell off again and weaker oil prices were an additional negative factor," one dealer said.

On Wednesday, two senior European Union officials said there was still no agreement on scaling up the size of the euro zone's bailout fund to better tackle the debt crisis.

Brent crude slipped below $111 on Wednesday as concerns over demand growth weighed after Moody's Investors Service cut Spain's sovereign ratings by two notches.

However, dealers said TOCOM prices could rebound again on Thursday if oil prices recover after the benchmark rubber contract found a strong support level of 300 yen.

Copyright Reuters, 2011