TOCOM extends losses on Shanghai plunge

Benchmark Tokyo rubber futures on Tuesday shed early gains to post a second straight session of declines, hurt by Shanghai plunge amid worries about slowing demand in the world's top buyer.

"Tokyo market came under pressure as Shanghai accelerated decline and a lower yen could not help much," said Satoru Yoshida, commodity analyst, Rakuten Securities.

The dollar firmed a little against the yen, trading up 0.2% on the day at 110.18 yen. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery finished down 1.6 yen at 185.3 yen (US$1.68) per kg.

The most-active rubber contract on the Shanghai futures exchange for September delivery tumbled 305 yuan to finish at 12,325 yuan (US$1,813) per tonne.

"There have been concerns over softening demand in China. Investors will be closely watching the country's economic indicators this week," Yoshida said.

China is due to release industrial output and retail sales for May on Wednesday.

China's industrial output in May is expected to rise 6.3%, easing slightly from 6.5% growth in April. Retail sales were forecast to be stable at 10.6%, down from 10.7% in April, likely due to weaker auto sales.

The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 137.8 US cents per kg, down 4.6 US cents.

(US$1 = 6.7970 Chinese yuan)

(US$1 = 110.1200 yen)