Tokyo rubber futures fall 3% on recession fears

Wednesday, 10 August 2011 00:59 - - {{hitsCtrl.values.hits}}

Reuters: The benchmark Tokyo rubber futures fell more than three per cent to a five-week low early in Asian trade on Tuesday, tracking falls in oil and share prices amid growing fears that the global economy may fall into a double-dip recession.

The key Tokyo Commodity Exchange rubber contract for January delivery was down 12.5 yen or 3.4 per cent at 358 yen as of 0020 GMT. The contract fell for a fourth straight session.

The most active rubber contract on the Shanghai rubber exchange for January delivery fell 15 yuan to finish at 33,690 yuan ($5,231) per tonne on Monday.

Sumitomo Rubber Industries Ltd , the world’s sixth-largest tyre maker, will invest an additional 10 billion yen ($130 million) by 2013 to turn its tyre factory in Thailand into one of the largest in the world, aiming to tap growing demand in Asia, the Nikkei business daily said on Tuesday.

Bridgestone Corp announced a plan on Monday to invest a combined 23.8 billion yen to increase its production capacity at two plants in China to meet the country’s increasing demand for tyres.