Benchmark Tokyo rubber futures followed Shanghai futures lower on Wednesday, ending down 1.5 percent at a near nine-week low, while the market also came under pressure as the yen strengthened against the dollar.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, gave up early gains of up to 0.7 percent after Shanghai futures opened on a weak note, dealers said.
The Tokyo Commodity Exchange rubber contract for September delivery finished 3 yen lower at 199.0 yen per kg, the lowest settlement since Jan. 30.
The benchmark contract touched an intraday low of 198.6 yen, the lowest since Feb. 2.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 255 yuan to finish at 12,630 yuan per tonne, after falling as much as 2.6 percent earlier to a one-week low.
"The market turned lower as the dollar/yen declined, while Shanghai's weakness also led TOCOM markets lower," said a Tokyo-based dealer.
"Despite yesterday's gains, the market is again on a downward loop, as exemplified by low prices of general rubber grade in Southeast Asia."
The US dollar was quoted around 119.90 yen, down from near a two-week high hit earlier, and compared with around 119.53 yen on Tuesday afternoon.
Crude rubber inventories at Japanese ports stood at 11,622 tonnes as of March. 31, down 2 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Wednesday.
The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 138.30 US cents per kg, down 1.7 cent.
