Benchmark Tokyo rubber futures slid in thin trade on Thursday as investors sold back long positions as a sharp selloff in Chinese stock market renewed concerns about slowing demand in top buyer China. The Tokyo Commodity Exchange rubber contract for July delivery finished 1.1 yen, or 0.7 percent, lower at 157.8 yen ($1.33) per kg.
"Selling pressure also increased after investors were disappointed to see the benchmark falling below 160 yen," a Tokyo-based dealer said. "The TOCOM benchmark may stay in a narrow range near the current level until the end of the Chinese New Year," he added.
Chinese markets will be closed for a week starting on February 8 for the Chinese New Year. The most-active rubber contract on the Shanghai futures exchange for May delivery fell 125 yuan to finish at 10,190 yuan ($1,550.02) per tonne. The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 104.0 US cents per kg, down 3.8 cent.
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