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TOKYO, April 28 (Reuters) – Key Tokyo rubber futures fell across the board on Wednesday as weakness in oil and a higher yen dampened sentiment, encouraging investors to take profits from recent gains.
* The key Tokyo Commodity Exchange rubber contract for October delivery <0#JRU:> fell 6 yen or nearly 2 percent to settle at 305.8 yen per kg, the lowest benchmark close in about a month.
* Oil fell again on Wednesday to below $82 a barrel, taking losses this week to more than 3 percent, after a surge in U.S. crude inventories fed negative sentiment following the downgrade of credit ratings for Greece and Portugal. [O/R]
* The euro hit a one-year low against the dollar on Wednesday and was seen likely to weaken further, after downgrades of Greece and Portugal’s credit ratings raised fears that the euro zone’s debt problems are spreading. [USD/]
* The yen trimmed earlier gains against the dollar. A higher yen weighs on yen-priced Tokyo rubber futures.
* The fall in the nearby contract, the May spot contract was limited as the problem of delays in cargoes to deliver through TOCOM kept upward pressure on prices.
* Asian physical rubber prices were unchanged around recent firm levels on Wednesday as tight supply offset falls in futures contract prices on the Tokyo Commodity Exchange. [ID:nSGE63R020]
* China sold 30,000 tonnes of natural rubber from state reserves in open bidding last week, the National Development and Reform Commission said on Tuesday. The rubber was bought by 26 companies at prices between 23,600-24,840 yuan ($3,457-$3,639) per tonne, the commission said. [ID:nTOE63Q01O]
* Japan’s Nikkei average slid 2.6 percent on Wednesday, dragged down by exporters such as Kyocera <6971.T> on worries over the euro zone’s debt problems. [.T]
Source: Reuters