SINGAPORE: Japanese rubber futures fell on Friday as weaker oil prices and Asian equities dented risk appetite, prompting fresh selling, while concerns over slow automobile output due to the spreading pandemic also weighed on sentiment.
The Osaka Exchange rubber contract for June delivery finished 6.1 yen, or 2.4%, lower at 244.4 yen ($2.2) per kg. The benchmark booked a 0.9% loss for the week, its first weekly drop in four.
Rubber prices fell due to uncertainty created by a fall in global stock markets and oil prices, a Singapore-based trader said.
Oil prices fell, after rising to seven-year highs this week, as investors took profits following a build-up in U.S. crude and fuel inventories, though overall sentiment remained solid due to concerns over tight supply and geopolitics.
Asian share markets tumbled, tracking losses on Wall Street, as lingering concerns over the Federal Reserve’s tightening and weaker-than-expected economic and earnings data weighed on sentiment ahead of a Fed policy meeting next week.