TOCOM ends down 1.8pc at 9-week low

Benchmark Tokyo rubber futures extended losses on Monday, ending down 1.8 percent at a nine-week low as a stronger yen more than offset strength in global oil prices.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, had been buoyed by a seasonal drop in rubber production during the winter, but the market fundamentals have recently been under pressure amid worries over demand, especially in China due to a slowing economy.

For the first two months of 2015, China's natural rubber imports tumbled 26.2 percent to 394,528 tonnes.

The Tokyo Commodity Exchange rubber contract for September delivery finished lower 3.7 yen at 200.4 yen per kg, the lowest settlement since Jan. 30.

The contract touched an intraday low of 199.7 yen, falling below the 200 mark for the first time since Feb. 2.

A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.

Oil futures climbed more than $1 a barrel, after Saudi Arabia raised prices for crude sales to Asia for a second month, signalling better demand in the region.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange dropped 1.8 percent from the previous week, the bourse said on Friday after the market close.

"The strong yen put some downward pressure on front-month, pushing down the benchmark contract," said a Tokyo-based dealer. "Shanghai futures are likely to head lower on Tuesday when they reopen."

The U.S. dollar was quoted at about 118.85 yen, compared with around 119.71 on Friday afternoon.

Shanghai futures were closed on Monday for a public holiday, with trading to resume on Tuesday.

The front-month rubber contract on Singapore's SICOM exchange for May delivery last traded at 138.70 U.S. cents per kg, down 2.6 cents.