The weakening of rubber prices continued in the second day of consecutive trading on Friday (9/2/2018), in line with the continued weakening of crude oil prices and the performance of global stocks again depressed.
Rubber for July 2018 at Tokyo Commodity Exchange (Tocom), shed 1.87 percent, or 3.60 points, to 188.70 yen per kilogram (kg) at 0943 GMT.
Previously, the July rubber contract price opened stagnant at 192.30 position, having ended down 1.64% or 3.20 points at 192.30 position on Thursday (8/2).
Thus, rubber has fallen about 3.9% this week, heading for the biggest weekly decline since Nov. 21.
According to Naohiro Niimura, partner at market research firm Risk Advisory, a sell-off against global stock markets encourages risk aversion by investors.
"It triggers the sale of rubber and other industrial commodities," Niimura continued, as quoted by Bloomberg.
Asian stocks slumped in trading this morning after US stocks again declined amid concerns over rising bond yields.
US stocks began to falter since Friday last week after healthy US nonfarm payrolls data sparked a surge in bond yields and fears of rising inflation that could trigger a central bank interest rate hike.
At the same time, the price of WTI oil contract in March 2018 today was observed further down 1.13% or 0.69 points to US $ 60.46 per barrel at 09.38 WIB, the weakness for the sixth consecutive day.
Oil continued to weaken below $ 61 a barrel as soaring US crude supplies coupled with technical indicators signaled further price downside potential.
In addition to weighing on the movement of rubber, China's rubber reserves monitored by Shanghai Futures Exchange increased 1.7% last week to 426,498 tons, the tenth consecutive weekly rise.
On the other hand, the observed yen exchange rate depreciated 0.12% or 0.13 points to 108.87 per dollar at 09.48 WIB, after trading on Thursday (8/2) ended up 0.54% or 0.59 points at the 108.74 level.
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