Oct. 23 (Bloomberg) -- Rubber dropped the most in more than three weeks as Japan’s currency jumped to a two-week high against the dollar, reducing the appeal of yen-denominated futures.
The contract for delivery in March lost 2.6 percent to 261.5 yen a kilogram ($2,682 a metric ton) on the Tokyo Commodity Exchange, the lowest settlement since Oct. 10. It was the biggest daily loss since Sept. 27.
The yen rebounded to 97.27 per dollar, the strongest level since Oct. 9. It was bought as a haven as China’s benchmark money-market rate jumped the most since July, triggering sales of Asian stocks. A U.S. Labor Department report showed yesterday employers added 148,000 workers in September, below the 180,000 gain projected in a Bloomberg survey.
“Futures in Tokyo came under pressure as the yen rebounded,” said Gu Jiong, an analyst at broker Yutaka Shoji Co. in Tokyo. “A drop in the Chinese market also damped investor sentiment.”
Worries about an economic slowdown in China, the world’s largest consumer, have persisted even after expansion of the nation’s gross domestic product to 7.8 percent in the third quarter. Growth may slow to 7.6 percent this year, the weakest pace since 1999, according to the median estimate of economists in a Bloomberg survey.
Rubber for January delivery on the Shanghai Futures Exchange lost 1.7 percent to close at 20,105 yuan ($3,303) a ton. Thai rubber free-on-board was unchanged at 79.55 baht ($2.56) a kilogram yesterday, according to the Rubber Research Institute of Thailand. Thai markets are closed today for holiday.
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