The key Tokyo rubber futures contract ended 6.3 percent lower in volatile trade on Wednesday, shedding early gains due to stop-loss selling fuelled by a reversal in oil prices. The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery fell 12.2 yen, or 6.3 percent, to settle at 181.4 yen ($1.83) per kg.
The benchmark turned round after an early 7.9 percent gain as speculators liquidated contracts to avoid risks after seeing oil prices fall. Oil fell more than 3 percent towards $68 a barrel, reversing part of the previous day's surge after Democrat Barack Obama's victory in the US presidential election gave a boost to the dollar.
Rubber prices often move in line with oil prices as both markets are sensitive to demand from the automobile sector. On the physical front, rubber prices rose in line with TOCOM, but trading was not busy, with buyers generally waiting to buy when prices dip, traders said.
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