TOKYO: Key TOCOM rubber futures extended losses on Tuesday in heavy trading after recent rapid gains, but brighter global economic prospects and a recent slide in the yen limited the fall .
The key Tokyo Commodity Exchange rubber contract for August delivery settled down 2 yen, or 0.7 percent, at 334.9 yen, after hitting an intraday low of 329.5 yen, down 7.4 yen or 2.2 percent.
Volume totalled 14,132 lots, the largest in about a month.
"The market entered into a brief correction phase after nearly a 30 percent jump in prices since the start of this year, but there are sill many investors who are willing to buy on dip," said Naoki Asami, chief broker at trading house Kanetsu.
The most active Shanghai rubber contract for May delivery rose 1.4 percent to close at 29,315 yuan per tonne on Tuesday, up from 28,910 yuan.
The front-month March rubber contract on the SICOM in Singapore was last traded at 376 US cents per kg, down 1.8 cents.
Brent crude futures extended losses and slipped below $124 on Tuesday, snapping a surge that threatened to hurt the global economy while concerns over supply from the Middle East helped stem the slide.
Japan's Nikkei average hit a fresh seven-month closing high on Tuesday as investors reassessed the impact of Elpida Memory Inc's bankruptcy protection filing on the chip sector and bought back some of the stocks they sold earlier in the day.
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