Tokyo rubber futures ended lower on Tuesday, weighed by stronger Japanese yen, weak oil prices and uncertainty on rubber demand amid fragile auto industry outlook, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery fell 1.0 yen, or 0.3 percent, to settle at 288.3 yen ($3.39) per kg.
"There was no positive factor to support rubber futures today and I expect that technical sentiment would turn weak again after prices failed to break above 290 yen," a Japanese dealer said. US auto safety regulators have stepped up an investigation into a risk that up to 1.2 million Toyota Motor Corp Corolla and Matrix vehicles could stall due to defective electronic engine control units.
Chrysler CEO Sergio Marchionne said on Monday it would be "difficult" for the automaker to turn a net profit for the full year 2010. TOCOM rubber was expected to be trapped in a narrow range with 285 yen was seen as a strong support, while 290 yen was expected to the key resistance, dealers said.