TOCOM FALLS ON WEAK OIL PRICES, STRONGER YEN

Benchmark Tokyo rubber futures ended 0.6 percent lower on Tuesday as the market came under pressure from weak oil prices and a stronger yen against the dollar.

Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, were also pressured by early losses in Shanghai futures, which ended higher at the close.

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

"The market is thin and there's selling pressure with weak Shanghai futures," said a source with a Tokyo-based broker.

The Tokyo Commodity Exchange rubber contract for December delivery <0#2JRU:> finished 1 yen lower at 158.2 yen ($1.49) per kg. TOCOM markets were closed on Monday for a national holiday.

The US dollar was quoted around 105.89 yen, down from around 106.32 yen on Friday afternoon, as investors took profit after its recent rally.

The most-active rubber contract on the Shanghai futures exchange for September delivery rose 90 yuan to finish at 11,355 yuan ($1,696) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 130 US cents per kg, down 0.1 cent.