Key Tokyo rubber futures fell 1 percent to slip below 170 yen on Friday, extending losses from the previous day, reflecting a decline in crude oil prices. The key Tokyo Commodity Exchange rubber contract for November delivery was down 2.0 yen or 1.2 percent at 168.9 yen per kg at 0250 GMT, after moving between 168.8 yen and 171.0 yen.
The benchmark has been trading on both sides of 170 yen since the beginning of the month, in most cases tracking crude oil in the absence of other trading incentives. It is down about 6 percent from the year's high of 179.7 yen marked on April 13.
A Tokyo-based trader said TOCOM rubber was likely to come under downward pressure in the days ahead as more supplies become available. Unseasonal rain that followed the end of wintering in Thailand around the end of April tightened supplies of rubber in the top producer. Latex output falls during wintering, while rain prevents workers from tapping.
US crude futures fell towards $72 a barrel as investors locked in profits after prices marked a fresh seven-month high a day earlier on hopes for a recovery in the global economy and forecasts of growth in oil demand. Japan's Nikkei average rose about 1 percent to hit its highest level in eight months as improving confidence in the health of the global economy spurred broad-based gains.
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