Benchmark Tokyo rubber futures edged lower on Thursday and stood near a 26-month low as a weaker yen offset sluggish Shanghai futures. China's natural and synthetic rubber imports grew 3.2 percent last month from a year earlier to 547,000 tonnes, China's preliminary trade data showed on Thursday.
The dollar strengthened versus the yen to trade at 113.70. The dollar has gained over the past week versus the yen due to the diverging monetary policies of the US Fed and the Bank of Japan. A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.
"A weaker yen supported the market but it was offset by lower Shanghai market," said a Japanese trading source. The Tokyo Commodity Exchange rubber contract for April delivery finished 0.9 yen lower at 159.4 yen ($1.40) per kg, staying near a 26-month low hit a day earlier. TOCOM's technically specified rubber (TSR) 20 futures contract for May delivery rose 0.1 yen to close at 146.1 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 15 yuan to finish at 11,330 yuan ($1,634.85) per tonne. The front-month rubber contract on Singapore's SICOM exchange for December delivery last traded at 124.1 US cents per kg, down 0.1 cent.
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