Tokyo rubber futures dropped more than 3 percent to their lowest level in a week on Wednesday, tracking oil and share prices which were weighed by renewed concerns about Europe's debt crisis and fears about falling global demand, dealers said.
The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery fell 4.8 yen to settle at 293.0 yen ($3.73) per kg. It fell as much as 3.4 percent to an intra-day low of 287.8 yen, the lowest since October 24. The most active Shanghai rubber contract for January delivery rose 560 yuan to finish at 26,970 yuan ($4,244) per tonne.
"Shanghai rubber futures lent some support to Tokyo futures. Investors buying back contracts helped support prices to finish above the 290 yen level, despite negative factors," said a Tokyo-based dealer. Brent crude fell for a fourth day on Wednesday, its longest losing streak since September, on worries that renewed eurozone debt woes and weak economic data from China and the United States could hurt the global recovery and reduce oil demand. Dealers said TOCOM prices could still be trapped in the narrow range of 290 yen and 300 yen, with the Europe debt problem being seen as a major negative factor weighing on prices.
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