TOKYO: Japanese rubber futures slid on Wednesday as weaker global stocks and oil prices reduced risk appetite, and on fears that increasing coronavirus cases in Asia and rising US interest rates could slow economic recovery.
Osaka Exchange’s rubber contract for October delivery finished 2.4 yen, or 1.0%, lower at 245.4 yen ($2.3) per kg.
The rubber contract on the Shanghai futures exchange for September delivery fell 60 yuan to finish at 13,290 yuan ($2,065) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for June delivery last traded at 162.5 US cents per kg, down 1.3%.
Global stocks slipped on Wednesday as a threat of inflation drove investors away from assets seen as vulnerable to any removal of monetary stimulus. Oil prices fell for a second day on Wednesday on renewed demand concerns as coronavirus cases in Asia rise and on fears that rising inflation might lead the US Federal Reserve to raise interest rates.
India reported 267,334 new daily infections on Wednesday, taking its tally to 25.5 million, the world’s second highest after the United States.
After successfully thwarting earlier outbreaks, Thailand is dealing with a more stubborn wave that has seen overall cases nearly quadruple since early April, and deaths increase six-fold, with Bangkok as the epicentre.
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