BANGKOK: Tokyo rubber futures tumbled more than 4 percent to a two-week low on Thursday after falls in other commodities triggered stop-loss selling, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery fell 11.4 yen, or 4.1 percent, to settle at 266.8 yen ($3.42) per kg.
It fell as much as 4.3 percent at one stage to 266.2 yen, the lowest since December 1.
"Rubber futures moved down like other commodities and technical sentiment turned weak when prices dropped below 270 yen, which encouraged players to sell contracts heavily to stop losses," one dealer said.
Spot gold weakened further on Thursday after dropping 3.5 percent in the previous session as investors remained nervous about the euro zone debt crisis amid a year-end rush to liquidate positions.
Brent crude was little changed at $105 on Thursday but it had its biggest fall in nearly three months the previous session.
Dealers said 260 yen was seen as a strong support level for rubber futures and there was major resistance at 270 yen.
Comments
Comments are closed for this article.