Tokyo rubber drops over six percent

Tokyo rubber futures lost over 6 percent on Monday, the most in 17 months, after China's unexpectedly weak economic data worsened the demand outlook and prompted a rash of selling in a market already bearish due to a bounce in the yen. Kazuhiko Saito, chief analyst at brokerage Fujitomi Co, said the Tokyo market had been bearish before a sell-off was accelerated by main consumer China's gross domestic product data, which came in weaker than expected.
The key Tokyo Commodity Exchange rubber contract, for September delivery, settled 17.4 yen, or 6.3 percent, lower at 259.0 yen. It was the biggest percentage fall since November 10, 2011. The most-active rubber contract on the Shanghai futures exchange for September delivery fell by the daily limit to finish at 20,355 yuan per tonne. The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 238.90 US cents per kg, down 17.9 cents.