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TOKYO, June 9 (Reuters) – Key Tokyo rubber futures fell to a three-week low before paring losses by the close on Wednesday as investor sentiment weakened with a slide in stocks and a slight rise in the yen.
* The key Tokyo Commodity Exchange rubber contract for November delivery <0#JRU:> closed down 1.9 yen at 260.2 yen per kg. It earlier fell as low as 253.6 yen, the lowest for any benchmark since May 18.
* The November contract could test last month’s trough of 250.9 yen, which is the lowest for any benchmark since mid-December, if fund selling continues.
* But traders are likely to step in and buy the spot June contract as long as receiving delivery here is less costly than buying in producing countries, meaning overall falls on TOCOM would be limited, analysts said. The spot June TOCOM contract ended down 1.8 yen at 349.2 yen ($3.82).
* Japan’s Nikkei average <.N225> fell to a six-month closing low on Wednesday as investors worried about whether Europe can tackle its debt woes after Fitch Ratings said Britain faced a “formidable” fiscal challenge. [.T]
* The euro lost steam on Wednesday, keeping near a four-year low on the dollar, while higher-risk currencies slid as Asian share markets fell. In contrast, the yen inched up against the dollar. [USD/]
* U.S. crude futures rose 1 percent on Wednesday for a third day of gains on news of strong overall Chinese exports and after an industry report showed a larger-than-expected decline in U.S. crude stocks. [O/R]
* A strike at a China parts supplier for Honda Motor <7267.T> entered its third day on Wednesday, hobbling production at two of the Japanese automaker’s China plants in the latest of a growing series of labour disputes in the country. [ID:nTOE65801O]
* Car sales in India posted their best May ever, rising by a third from a year ago, an industry body said on Wednesday, as rising incomes and a rapidly expanding economy offset the impact of price increases. [ID:nSGE65805U]
* Production at Hyundai Motor’s <005380.KS> India plant has resumed, even as a section of workers continued with their strike for the third day, a spokesman for the local unit said on Wednesday. [ID:nBMA007761]
Source: Reuters