Benchmark Tokyo rubber futures extended declines on Tuesday, tracking weak Shanghai futures, while the new benchmark contract hit a one-week low after last week's surge to a four-month high.
Thin trading on Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, reflected investor caution ahead of the long National Day holiday starting on Oct. 1, when Chinese markets will remain closed for a week.
"Mostly, the participants were in position adjustments ahead of the week-long holiday in China next week," a Tokyo-based broker said.The Tokyo Commodity Exchange new benchmark rubber contract for March delivery <0#2JRU:> ended down at 164.5 yen ($1.63) per kg, from its opening price of 165 yen.
The most-active rubber contract on the Shanghai futures exchange for January delivery dived 136.5 yuan to finish at 13,295 yuan ($1,993.70) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for October delivery last traded at 136 U.S. cents per kg, down 3.1 cents. ($1 = 100.7800 yen) ($1 = 6.6685 Chinese yuan)
