Benchmark Tokyo rubber futures closed lower on Thursday on renewed trade tensions after Washington launched a national security probe into auto imports and US President Donald Trump's comments suggested setbacks in their talks with China.
The Tokyo Commodity Exchange (TOCOM) rubber contract for October delivery finished 2.7 yen lower at 193.8 yen (US$1.77) per kg.
"The market came under presser as investors became worried that any further trade tensions could slow down global economy and reduce demand for commodities, including rubber," said Satoru Yoshida, commodity analyst, Rakuten Securities.[X] CLOSESponsored Contentvolume_offVideo Player Asian shares fell on Thursday due to the US national security probe into car imports that could lead to new tariffs and Trump said any trade deal with China would "need a different structure".
"Stronger yen and a drop in Shanghai rubber futures also hurt market sentiment," Yoshida said.
The dollar fell 0.6% against the yen to 109.47.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 150 yuan to finish at 11,855 yuan (US$1,856) per tonne.
The TOCOM futures, which set the tone for rubber prices in Southeast Asia, has reached a key 200-yen mark earlier this week, hitting a nearly four-month high, but that prompted technical selling, Yoshida said.
The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 144.0 US cents per kg, down 0.7 cent.
(US$1 = 6.3859 Chinese yuan)
(US$1 = 109.6200 yen)
