Benchmark Tokyo rubber futures fell to their lowest in nearly seven years on Tuesday as investors continued to sell amid worries about shaky stock markets in China and Japan and renewed concerns over softening demand in top buyer China. The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery finished 2.2 yen, or 1.4 percent, lower at 150.6 yen ($1.26) per kg. It earlier hit a low of 149.1 yen, the lowest since March 26, 2009.
"Investors increased short positions as they worried about Chinese stock market that plunged on Monday," said Hiroyuki Kikukawa, general manager at Nihon Unicom Inc. The most-active rubber contract on the Shanghai Futures Exchange for May delivery fell 60 yuan to finish at 10,190 yuan ($1,563.03) per tonne. The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 109.5 US cents per kg, down 1.3 cent.