Benchmark Tokyo rubber futures slipped to a 10-day low on Monday as tumbling Asian stock markets, amid fears over weaker global economy, trimmed risk appetite among investors, dealers said. The Tokyo Commodity Exchange (TOCOM) rubber contract for May delivery finished 2.9 yen lower at 161.5 yen ($1.43) per kg.
The TOCOM benchmark, which sets the tone for rubber prices in Southeast Asia, dived to as low as 159.7 yen, the weakest since Nov. 30, earlier in the session. TOCOM's technically specified rubber (TSR) 20 futures contract for June delivery fell 1.2 percent to close at 143.4 yen per kg.
The most-active rubber contract on the Shanghai futures exchange for May delivery dropped 25 yuan to finish at 11,215 yuan ($1,632) per tonne. The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 122.7 US cents per kg, down 0.7 cent. Losses in global stock markets snowballed on Monday, with US equity futures and Asian shares sliding on worries over slowing growth and fears that a rise in tensions between Washington and Beijing could torpedo chances of a trade deal. "Slumping stocks in the United States and Asia weighed on market sentiment," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.
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