TOKYO: Japanese rubber futures plunged on Tuesday as investors took profits ahead of Christmas holidays and a highly infectious new strain of COVID-19 spreading across Britain renewed fears about the economic impact of new lockdowns. Osaka Exchange's rubber contract for May delivery finished down 17.0 yen, or 6.8%, at 231.2 yen ($2.2) per kg, marking its biggest one-day percentage drop since early November.
The rubber contract on the Shanghai futures exchange for May delivery tumbled 1,065 yuan to finish at 13,905 yuan ($2,124) per tonne, after hitting its lowest since Oct. 16 at 13,900 yuan. The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 151.2 US cents per kg, down 4.4%.
"Investors booked profits in early trade following an overnight loss in Shanghai futures," said Jiong Gu, an analyst at Yutaka Shoji Co.
"Then, concerns over a new strain of coronavirus turned investors further to risk-off mode," he added.
Countries across the world shut their borders to the UK on Monday because of fears over a new variant of the disease, snarling one of Europe's most important trade routes just days before Britain is set to leave the European Union.
Comments
Comments are closed for this article.