Key TOCOM rubber futures eased off a one-week high hit earlier on Monday to close down 0.5 percent, tracking falls in crude oil and stocks, but hopes for further stimulus measures by the Bank of Japan limited losses. The benchmark Tokyo Commodity Exchange rubber contract for April delivery settled down 1.3 yen at 258.2 yen per kg. The contract had earlier risen as high as 1.9 percent to 264.5 yen, its highest since October 19, on hopes that the Bank of Japan will deliver more economic stimulus when it meets on Tuesday.
"Buying on short-covering has run its course. A strong gain may not occur even if the BoJ comes up with a further monetary easing policy," said Kaname Gokon, analyst at trading house Okato Shoji Co. The front-month December rubber contract on the SICOM in Singapore was last traded at 285 US cents per kg, down 2 percent. The most active Shanghai rubber contract for January delivery closed down 0.7 percent at 24,590 yuan per tonne. Finance Minister Koriki Jojima said on Monday he wants the Bank of Japan to take bold policy steps while closely working with the government to beat deflation.