TOCOM falls for 4th session on weak oil, China worries

Benchmark Tokyo rubber futures fell for a fourth straight session to a fresh 3-week low on Wednesday as plunging oil prices and nagging concerns about slack demand in top consumer China weighed on investor sentiment, dealers said.

The Tokyo Commodity Exchange rubber contract for September delivery closed 1.0 yen, or 0.5 percent, lower at 204.9 yen ($2) per kg. It fell to as low as 203.9 yen on Wednesday, close to an intra-day low 203.5 yen hit on March 11.

"The market has been under pressure as the prices of oil and other commodities have been slumping," said Toshitaka Tazawa, analyst at Fujitomi Co.

"The rubber benchmark will test March 11's low of 203.5 yen and 200 yen as long as a weak tone in other commodities market continues," he said.

China's data also added to selling pressure, dealers said.

Surveys of China's factory and services sectors showed stubborn weakness in the world's second-biggest economy in March, adding to bets that Beijing will have to roll out more policy support to avert a sharper slowdown.

The most-active rubber contract on the Shanghai futures exchange for September delivery fell 40 yuan to close at 12,595 yuan ($2,032) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 140.8 U.S. cents per kg, down 1.0 cent.