Benchmark Tokyo rubber futures fell on Tuesday, after hitting a one-week high earlier in the session, as sliding oil prices and weaker Shanghai futures prompted selling, outpacing a softer yen. "The TOCOM lost ground after Shanghai futures weakened amid some speculations about Beijing's possible tightening of commodities trading regulations," a Tokyo-based dealer said. The Tokyo Commodity Exchange (TOCOM) rubber contract for August delivery finished down 1.9 yen, or 0.7 percent, at 262.0 yen ($2.28) per kg, after touching 267.5 yen, the highest since March 8.
The most-active rubber contract on the Shanghai futures exchange for May delivery fell 45 yuan to finish at 17,515 yuan ($2,531.5) per tonne. The front-month rubber contract on Singapore's SICOM exchange for April delivery last traded at 196.5 US cents per kg, down 3.4 cents. Crude oil prices hovered near three-month lows on Tuesday, with investors waiting for key reports and data that may shed light on a supply overhang in the global market.
Investors largely shrugged off positive data from the world's second-largest economy. China's factory output and fixed-asset investment grew 6.3 percent and 8.9 percent, respectively, in the first two months of the year, data showed on Tuesday, exceeding market expectations. The dollar gained 0.1 percent to 114.92 yen, but remains below the seven-week high touched on Friday on expectations of a Fed move at the end of a two-day meeting on Wednesday.