Tokyo Futures Edge Lower After Shanghai Loss

Key Tokyo rubber futures fell 2.5 percent on Tuesday (February 22) as concerns mounted that China's recent monetary tightening may dent demand, pushing down Shanghai futures prices , but a surge in oil prices lent support.
The key Tokyo Commodity Exchange rubber contract for July delivery was down 12.9 yen or 2.5 percent at 512 yen as of 0055 GMT. The contract hit a record high of 535.7 yen last week.
On Monday (February 21), the most active Shanghai rubber futures for May delivery traded down 1.5 percent and settled at 40,495 yuan ($6,160) per tonne. Volume fell to 520,416 lots from 728,602 lots. The contract hit a record high of 43,500 yuan last week.
U.S. crude futures extended gains on Tuesday (February 22), with the nearby March contract rising by more than $2 from late New York levels to above $93.50 per barrel as concern grew that violence in Libya could lead to wider supply disruptions from the OPEC country.
The U.S. dollar edged up against a basket of major currencies in early Asian trade on Tuesday, although the Australian dollar eased and could suffer further declines as mounting tensions in the Middle East drive investors to cut risk.
(Reuters, February 22, 2011)