TOKYO: Japanese rubber futures slid on Thursday as a stronger yen against the US dollar prompted selling and a drop in oil and Tokyo equities markets eroded risk appetite among investors. Osaka Exchange's rubber contract for April delivery finished 2.1 yen, or 0.9%, lower at 230.8 yen ($2.0) per kg.
The dollar was quoted around 113.52 yen, compared with 114.09 yen on Wednesday. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies. Oil prices slumped to their lowest in two weeks on Thursday after Iran said talks with world powers on its nuclear programme would resume by the end of November and US crude inventories rose by much more than expected.
Japanese shares fell on Thursday as downbeat forecasts from technology companies prompted a sell-off, though gains in heavyweight chip-related companies limited losses. The rubber contract on the Shanghai futures exchange for January delivery rose 255 yuan to finish at 15,170 yuan ($2,372) a tonne. The front-month rubber contract on Singapore's SICOM exchange for November delivery last traded at 173.0 US cents per kg, up 0.6%.
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