TOCOM ends down 1.2pc on oil’s fall

Benchmark Tokyo rubber futures closed 1.2 percent lower on Thursday, marking the first decline in four sessions as steep falls in crude oil prompted some profit-taking following gains of more than 6 percent in the past three sessions.

The Tokyo Commodity Exchange (TOCOM) rubber contract for July delivery finished 2.5 yen lower at 206.4 yen per kg, after gaining 6.5 percent in the past three sessions.

The losses were limited after China took steps to pour fresh liquidity into the world's second-biggest economy to spur activity.

TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, touched a four-week high on Wednesday, closing in on early January's six-month high, which it touched on worries over lower production in flood-hit Malaysia and Thailand.

"Crude fell last night and we were in profit-taking mode," said a source with a Tokyo-based broker. "Contracts for February through April delivery remained relatively firm compared with the benchmark July contract."

Brent crude prices extended declines on Thursday after posting a 6.5 percent decline in the previous session, hurt by a rebound in the dollar.

The U.S. dollar was quoted around 117.13 yen, compared with 117.63 yen on Wednesday afternoon.

The most-active rubber contract on the Shanghai futures exchange for May delivery fell 260 yuan to finish at 13,325 yuan per tonne.

The front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 138 U.S. cents per kg, down 2.5 cents.