Tokyo rubber futures dropped 2.5 percent to a one-week low on Monday as weak US economic data raised concern about demand, and falling oil prices added to the downward pressure, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for December delivery fell 9.8 yen, or 2.5 percent, to settle at 369.4 yen ($4.92) per kg. It fell to an intra-day low of 369.2 yen, the lowest since July 4.
The most active rubber contract on the Shanghai futures exchange for January delivery fell 680 yuan to finish at 33,665 yuan ($5,207) per tonne. US jobs growth ground to a near halt in June as employers hired the fewest workers in nine months, frustrating hopes the economy would bounce back quickly from a slowdown in the first half of the year. That signalled poor demand for commodities. "The US data was not good and weaker oil prices were an additional factor that hammered rubber prices down," one dealer said. However, dealers said TOCOM rubber could rebound on Tuesday if it found support at 365 yen and oil prices recovered.