TOCOM slides to 1-week low amid growing fears over trade tensions on June 3

Tokyo Commodity Exchange (TOCOM) futures slid to about 1-week lows on Monday, amid rising concerns that escalating Sino-U.S. trade tensions and Washington's new tariff threats against Mexico could hurt global demand.

The benchmark TOCOM rubber contract for November delivery finished 2 yen or 1% lower at 192.2 yen (US$1.78) per kg, after hitting the lowest since May 24 of 190 yen earlier in the session.

The most active rubber contract on the Shanghai futures exchange for September delivery plunged 280 yuan to finish at 11,900 yuan (US$1,723) per tonne.

Trade tensions have grabbed centre stage for investors in recent weeks, after U.S. President Donald Trump increased tariffs on Chinese imports, threatened to raise tariffs on Mexican imports and removed preferential trade treatment for India.

"Growing concerns over intensifying trade spats and weakening Tokyo stock market prompted a flurry of selling," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

"If Sino-U.S. trade conflicts don't turn toward easing, after the 30th anniversary of Tiananmen Square crackdown, market sentiment will likely worsen further," Kikukawa added.

Japan's benchmark Nikkei stock average hit the skids on Monday, as investors fretted about the rising risks to global and domestic growth from a potentially protracted and widening tariff war between the United States and its major trading partners.

China's factory activity expanded at a steady but modest pace in May, a private survey showed, but analysts say front-loading of exports by firms to the United States to avoid higher tariffs masked underlying weakness in the economy.

The price of Thailand's benchmark smoked rubber sheet (RSS3) reached its highest in 20 months on Friday, as dry weather and export curbs capped supply, the state rubber chief told Reuters.

Thailand asked exporters to curb rubber exports from May 20 and is not delaying export cuts agreed with other regional producers, an official from the country's rubber association said on Friday.

Malaysia's export of rubber products in April rose 1.7% from a year earlier.

Oil prices fell by around 1% on Monday, extending losses of over 3% from Friday, when crude markets slipped to their biggest monthly losses in six months, amid stalling demand and as trade wars fanned fears of a global economic slowdown.

TOCOM's technically specified rubber (TSR) 20 futures contract for new December delivery closed at 162.0 yen per kg, down 1.1% from an opening price of 163.8 yen.

The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 151.0 U.S. cents per kg, down 0.5%.(US$1 = 108.2300 yen)

(US$1 = 6.9050 Chinese yuan)