Benchmark Tokyo rubber futures gave up early gains to end lower on Thursday, declining for a third straight session to hit a two-and-a-half-month low, as plunging Shanghai futures and weaker oil prices weighed on investor sentiment, dealers said. The Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery finished 1.4 yen, or 0.5 percent, lower at 257.0 yen ($2.24) per kg, after rising to as high as 261.2 yen earlier on a softer yen which makes yen-denominated assets more affordable when purchased in other currencies.
But a flurry of selling following a plunge in Shanghai futures sent the Tokyo benchmark to its lowest since December 29 at 255.8 yen. "The TOCOM pared earlier gains on Shanghai losses," said Satoru Yoshida, a commodity analyst at Rakuten Securities, adding that selling got momentum in Shanghai after the benchmark sank below a key 18,000 yuan level.
The most-active rubber contract on the Shanghai Futures Exchange for May delivery fell 480 yuan to finish at 17,555 yuan ($2,540) per tonne. "An overnight plunge in oil prices also hurt sentiment in an overall commodities markets including rubber," Yoshida said. The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 197.0 US cents per kg, down 2.1 cents.
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