Tokyo futures ease in thin trade; all eyes on US vote

Tokyo rubber futures edged lower in thin trade on Tuesday, dragged down by weaker oil prices and as investors shied away from risk ahead of the US presidential election later in the day.

The benchmark rubber contract on the Tokyo Commodity Exchange for April delivery slipped 0.6 yen to settle at 246.6 yen ($3.08) per kg.

But the most-active Shanghai rubber futures contract, for May delivery, scraped up 55 yuan to finish at 23,810 yuan ($3,800) per tonne. Dealers said it was buoyed by speculative buying from small players.

The front-month December rubber contract on Singapore's SICOM exchange was last traded at $2.75 cents per kg, down 1.3 cents.

"Players continued to sell contracts to avoid risk, while weaker oil was another negative factor that weighed on rubber prices," said a Bangkok-based dealer.

President Barack Obama and Republican challenger Mitt Romney engaged in frantic get-out-the-vote efforts and made final pleas to voters on Monday in a sprint through battleground states that will determine who wins their agonizingly close White House race.

Brent oil traded in a tight range below $108 per barrel on Tuesday, caught by uncertainty about the US election and renewed worried about the euro zone debt crisis.

Dealers said TOCOM prices would rebound on Wednesday after finding strong support at 245 yen, although gains would be limited until the outcome of the election becomes clear.