BANGKOK: Tokyo rubber futures slipped 1.7 percent on Thursday as weaker oil prices and concerns about the United States' fiscal crisis encouraged investors to sell contract to avoid losses, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange was down 4.9 yen, or 1.7 percent, to settle at 282.8 yen ($3.36) per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery was down 385 yuan to finish at 24,895 yuan ($4,000) per tonne.
The front-month January rubber contract on Singapore's SICOM exchange was last traded at $2.89 per kg, down 3.3 cents.
"An inconclusive talks about the US fiscal crisis was a major factor that triggered selling, while falling oil prices was an additional negative factor that weighed on TOCOM prices," said a Bangkok-based dealer.
Talks to avoid a US fiscal crisis stalled on Wednesday as President Barack Obama accused opponents of holding a personal grudge against him while the top Republican negotiator slammed the president for opposing their plan.
Brent crude slipped on Thursday to trade around $110 a barrel as investors took profit after recent gains as talks to avert a US fiscal crisis stalled, stoking worries about demand in the world's biggest oil consumer.
However, dealers said TOCOM prices could rebound on Friday after prices finished above a major support level of 280 yen.
Center>Copyright Reuters, 2012
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