SINGAPORE: Japanese rubber futures slumped to a 2-week low on Monday, as a plunge in Shanghai prices and weaker global shares amid growing tension between Russia and the West over Ukraine dented risk appetite.
The Osaka Exchange rubber contract for June delivery finished 6.2 yen, or 2.5%, lower at 238.2 yen ($2.09) per kg, after hitting the lowest since Jan. 11 of 238.1 yen earlier in the session.
The rubber contract on the Shanghai futures exchange for May delivery was down 385 yuan, or 2.6%, to finish at 14,340 yuan ($2,265) per tonne on Monday. It touched a 4-week low of 14,335 yuan earlier.
Shares across the world fell on Monday as the prospect of a Russian attack on Ukraine quashed demand for riskier assets, bolstering the dollar, buoying oil and bruising bitcoin.
Broad investor sentiment also remains fragile amid signs of slowing growth in China, the world’s second-largest economy.
The front-month rubber contract on Singapore Exchange’s SICOM platform for February delivery last traded at 175.1 US cents per kg, down 1.5%.