Rubber slumps by 4.6pc
Tuesday, 1 September 2009
TOKYO, Aug. 31 (Bloomberg): Rubber dropped by as much as 4.6 per cent as the yen climbed after the Democratic Party of Japan won national elections for the first time, and as a slump in Chinese stocks raised concern the commodity demand may weaken.
Futures in Tokyo retreated after earlier reaching 214.5 yen a kilogram, the highest level for the most-active contract since Oct. 8. The Japanese currency rose to a more-than-one-month high against the dollar, cutting the appeal of the yen-denominated contracts. China's stocks fell as measures to curb lending threatened to derail an economic recovery.
"Investors are becoming concerned that raw material demand may not be sustained after the effects of governments' stimulus measures disappear," Takaki Shigemoto, analyst at Tokyo-based commodity broker Okachi & Co., said today by phone.
February-delivery rubber fell 3.7 per cent to settle at 203.2 yen a kilogram ($2,191 a metric ton) on the Tokyo Commodity Exchange, booking the biggest daily loss since Aug. 17. Prices gained 3.9 per cent this month, extending a 21 per cent increase in July, the best performance since December 2006.
The Japanese currency advanced to 92.75 per dollar as of 3:26 p.m. in Tokyo from 93.60 in New York, after touching 92.55, the strongest level since July 13.
Futures in Tokyo retreated after earlier reaching 214.5 yen a kilogram, the highest level for the most-active contract since Oct. 8. The Japanese currency rose to a more-than-one-month high against the dollar, cutting the appeal of the yen-denominated contracts. China's stocks fell as measures to curb lending threatened to derail an economic recovery.
"Investors are becoming concerned that raw material demand may not be sustained after the effects of governments' stimulus measures disappear," Takaki Shigemoto, analyst at Tokyo-based commodity broker Okachi & Co., said today by phone.
February-delivery rubber fell 3.7 per cent to settle at 203.2 yen a kilogram ($2,191 a metric ton) on the Tokyo Commodity Exchange, booking the biggest daily loss since Aug. 17. Prices gained 3.9 per cent this month, extending a 21 per cent increase in July, the best performance since December 2006.
The Japanese currency advanced to 92.75 per dollar as of 3:26 p.m. in Tokyo from 93.60 in New York, after touching 92.55, the strongest level since July 13.