Rubber futures closed lower across Asia on disappointment that the Bank of Japan did not announce a further extension of its stimulus package following the conclusion of its two day meeting on Tuesday.
There was some positioning in play that saw a number of markets react negatively to the central bank holding firm. Gu Jiong, an analyst at Yutaka Shoji, said the rubber futures market was one of those to see weakness.
Furthermore, he said continued fragility in China's stock market -- with the Shanghai Composite Index sliding 3.5% to close at 3,005.17 -- was not helping investors who were concerned about what impact slowing growth in China would have on demand for the product.
However, the December Tocom benchmark rubber contract pared some of the session's losses to end up Y1.2 at Y170.8 a kilogram in the night session, which is considered part of the next day of trading.
