Rubber price was observed in the red zone in trading this morning, Monday (5/2/2018), weighed down by a number of factors.

Rubber price was observed in the red zone in trading this morning, Monday (5/2/2018), weighed down by a number of factors.

The price of rubber for delivery in July 2018 at Tokyo Commodity Exchange (Tocom), down 0.15% or 0.30 points to 196.60 yen per kilogram (kg) at 10:17 pm.

Earlier, July's contract rubber price movements opened in the red zone with a weakening 0.46% or 0.90 points at 196, after trading Friday (2/2) managed to maintain its rally by ending up 1.76% or 3.40 points at position 196,60 yen per kg.

According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, the rubber market sentiment was hurt by sharp declines in the stock market, the strengthening of the yen, and the weakening of crude oil prices.

Reported by Bloomberg, Asian stocks and stock markets in the United States (US) weakened, while expanding the largest selling action for global stocks in two years as investors adjusted with a surge in global bond yields.

Stocks slumped across the region as well as placing the MSCI Asia Pacific Index on track for its biggest decline in nearly 14 months.

At the same time, the yen appreciated to strengthen 0.23% or 0.25 points to 109.91 per dollar at 10:22 pm, having opened a thin 0.05% depreciation or 0.05 point at the 110 level, 21. In trading Friday (2/2), the yen ended down 0.69% or 0.76 points at 110.16 position.

Meanwhile, China's rubber reserves monitored by the Shanghai Futures Exchange increased 1.7% last week to 426,498 tons, the tenth consecutive weekly rise. The Rubber Trading Association of Japan recorded rubber stocks increased 8.2% to 13,307 tons.

In line with rubber, WTI oil price contract in March 2018 today fell 1.08% or 0.71 points to US $ 64.74 per barrel at 10:13 pm.