Benchmark Tokyo rubber futures fell to a 17-month low and ended down nearly 7 percent on Friday, pressured by the yen's surge and a plunge in Shanghai futures as mounting trade tensions between the world's two largest economies unnerved China's equity, bond and commodity markets. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for rubber prices in Southeast Asia, opened sharply lower and the declines accelerated after Shanghai futures plunged about 7 percent shortly after the open.
The Tokyo Commodity Exchange rubber contract for August delivery finished 12.8 yen, or 6.8 percent, lower at 174.5 yen ($1.67) per kg after plunging to 174.4 yen earlier, the lowest since Oct. 21, 2016. For the week, it tumbled 9 percent, the biggest weekly decline since February 2017.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 855 yuan, or 7 percent, to finish at 11,305 yuan ($1,788) per tonne. The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 133.60 US cents per kg, down 9.5 cents, or 6.6 percent. Beijing unveiled plans for tariffs on up to $3 billion of US imports in retaliation to US duties on Chinese steel and aluminium products went into effect on Friday.
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