TOKYO: Japanese rubber futures plunged on Tuesday as investors took profits ahead of Christmas holidays and a highly infectious new strain of COVID-19 spreading across Britain renewed fears about the economic impact of new lockdowns. Osaka Exchange's rubber contract for May delivery finished down 17.0 yen, or 6.8%, at 231.2 yen ($2.2) per kg, marking its biggest one-day percentage drop since early November.
The rubber contract on the Shanghai futures exchange for May delivery tumbled 1,065 yuan to finish at 13,905 yuan ($2,124) per tonne, after hitting its lowest since Oct. 16 at 13,900 yuan. The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 151.2 US cents per kg, down 4.4%.
"Investors booked profits in early trade following an overnight loss in Shanghai futures," said Jiong Gu, an analyst at Yutaka Shoji Co.
"Then, concerns over a new strain of coronavirus turned investors further to risk-off mode," he added.
Countries across the world shut their borders to the UK on Monday because of fears over a new variant of the disease, snarling one of Europe's most important trade routes just days before Britain is set to leave the European Union.