TOCOM tumbles to two-weeklow following Shanghai plunge

Benchmark Tokyo rubber futures tumbled more than four percent on Monday to a two-week low, as a plunge in Shanghai futures prompted a flurry of selling. The Tokyo Commodity Exchange (TOCOM) rubber contract for June delivery finished 10.7 yen, or 4.0 percent, lower at 255.5 yen ($2.18) per kg. It fell as low 252.5 yen during the session, its lowest since December 12.

Japanese markets were shut on Friday due to a national holiday. "The selling pressure mounted after Shanghai's slide accelerated in early trade," said a Tokyo-based trader who declined to be named. The most-active rubber contract on the Shanghai futures exchange for May delivery tumbled 955 yuan to finish at 17,660 yuan ($2,541.56) per tonne. The TOCOM futures, which set the tone for tyre rubber prices in Southeast Asia, were also weighed down by a firmer yen.

The dollar dipped against the yen on Monday, edging down after US Treasury yields dipped on mixed economic data. The greenback was at 117.03 yen in late Monday in Asia, with many key markets shut for the Christmas holidays. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies. Singapore's SICOM exchange was closed on Monday for a holiday.