Tokyo rubber slides on profit-taking, demand concerns

Tag : rubber

TOKYO, Oct 31 (Reuters) - The key Tokyo rubber futures contractfell 7 percent on Friday as a sell-off in copper and othercommodities in New York encouraged investors to lock in profitsafter a two-day rally in the industrial commodity.
* The price of copper, seen as a key gauge of real economicactivity, tumbled 10 percent on Thursday and helped shift investorfocus back to a slump in demand for rubber.
* The most active April 2009 contract on the Tokyo CommodityExchange had risen a total 14 percent in the past two sessions. Itdropped to 176.5 yen per kg as of 0031 GMT, down 13.4 yen or 7percent from Thursday's close.
* Earlier this week, the TOCOM rubber market took a hit asinvestors fled riskier assets, sending rubber as low as 153.4 yen,the lowest level since July 2005. But U.S. interest rate cuts easedinvestor nerves, albeit briefly.
* Japan's benchmark Nikkei share average dropped more than 3percent in early trade on Friday.
* Slowing economies around the globe and the widespread creditcrisis caused the largest auto industry companies to slashfull-year profit targets, warn of job losses and push for speedygovernment handouts. On Thursday, Japan's Mazda (other-otc: MZDAF.PK - news - people ) Motor Corp <7261.T> and Mitsubishi Motors (other-otc: MMTOF.PK - news - people ) Corp lowered their profit forecasts.
* Japan's crude rubber inventories fell 7.6 percent in the 10 daysto Oct. 10 to an all-time low 4,004 tonnes, Rubber TradeAssociation of Japan data showed on Thursday.
(Reporting by Risa Maeda)
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