TOCOM slides as selloff in China equity drags

Benchmark Tokyo rubber futures slid in thin trade on Thursday, as investors sold back long positions as a sharp selloff in Chinese stock market renewed concerns about slowing demand in top buyer China.

The Tokyo Commodity Exchange rubber contract for July delivery finished 1.1 yen or 0.7% lower at 157.8 yen (US$1.33) per kg.

China stocks slumped again on Thursday to a fresh one-year low as panic selling resumed, with Shanghai's Composite Index ending down 2.9%. Japan's Nikkei also lost 0.7%.

On the further downside, crude oil futures fell around 1% in Asian trading on Thursday, eroding gains of nearly 3% made in the previous session, after Russia held out the possibility of cooperating with OPEC to control global oversupply.

"Selling pressure also increased, after investors were disappointed to see the benchmark falling below 160 yen," a Tokyo-based dealer said.

"The TOCOM benchmark may stay in a narrow range near the current level until the end of the Chinese New Year," he added.

Chinese markets will be closed for a week starting on Feb 8 for the Chinese New Year.

The most-active rubber contract on the Shanghai futures exchange for May delivery fell 125 yuan to finish at 10,190 yuan (US$1,550.02) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 104.0 U.S. cents per kg, down 3.8 cent.