Rubber prices ended lower on the second day of trading on Friday (2/3/2018), depressed by a number of negative sentiment.
The price of rubber for delivery in August 2018 on the Tokyo Commodity Exchange (Tocom), closed down 0.52% or 1 point at 191.50 yen per kilogram (kg).
Rubber had rebounded when it opened in the green zone with a 0.16% rise or 0.3 points at 192.80 yen per kg, after trading yesterday closed down 0.67% or 1.30 points at 192.50 yen per kg.
Analysts from Fujitomi's commodity broker Kazuhiko Saito said the sharp weakness of the Nikkei index and the continued appreciation of the yen continued to push down rubber commodity prices.
The Nikkei 225 index today ended down 2.50% or 542.83 points at 21,181.64 level. The Topix Japan Index posted its biggest drop in three weeks in late trading today.
Japanese stocks continued to slide on a third day in a row amid market concerns surrounding a potential trade war, triggered by the announcement of tariff plans for the import of steel and aluminum by US President Donald Trump on Thursday (1/3).
Meanwhile, the yen appreciated 0.31 percent or 0.33 points to 105.91 per dollar at 14.28 pm. This morning the yen opened stagnant at 106.24, after ending up appreciating 0.41% at 106.24 on Thursday (1/3).
The yen strengthened after Governor Haruhiko Kuroda of the Bank of Japan said the BOJ would consider how to get out of its massive monetary stimulus program around fiscal 2019.
"The weakening of crude oil prices also contributed to price pressures," Saito added, as quoted by Bloomberg.
WTI oil price contract in April 2018 continued to fall slightly 0.05% or 0.03 points to US $ 0.96 per barrel at 14:18 pm, after trading on Thursday (1/3) ended down 1.05% at position 60, 99.
In addition to overburdening rubber, the Japan Rubber Association noted that Japan's crude rubber reserves rose 1.5% as of 10 February 2018 to 14,956 metric tons, while rubber stocks monitored by the Shanghai Futures Exchange increased 0.1% to 434,550 tons last week.
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