TOKYO, Nov 17 (Reuters) – Tokyo rubber futures closed a touch lower on Monday, giving up earlier gains of over 1 percent on the back of a rise in Japanese share prices.

 

* The key Tokyo Commodity Exchange rubber contract for April 2009 delivery <0#JRU:> closed at 174.3 yen a kg, down 0.4 yen or 0.2 percent. It moved between 170.0 and 177.2 yen.

 

* On Friday it gained 3.4 yen to 174.7 yen, snapping a three-day losing streak.

 

* Japan, the world’s second-biggest economy, has slipped into recession for the first time in seven years, government data showed on Monday. [ID:nT120174]

 

* But the data was somewhat as expected, said Hitoshi Inagawa, senior manager at Tokyo-base brokerage Yutaka Shoji Co.

 

“The financial markets had already sold to factor in a slew of such bearish news in the pipeline,” Inagawa said. “Given a recovery in the stock market as well as gold and platinum prices, rubber is gaining ground,” he said.

 

* Japan’s Nikkei average gained 0.7 percent on Monday despite the data. [.T]

 

* The U.S. dollar was nearly flat at 96.96 yen <JPY=>, after rising as high as 97.56 yen earlier. [USD/]

 

* TOCOM rubber futures prices are sounding out a floor after hitting a three-year trough of 153.4 yen in late October, pressured by the global economic crisis and bleak news about the auto industry, but physical prices have been supported by fundamental supply tightness.

 

PRICES OF ASIAN PHYSICAL RUBBER COMPARED WITH FRIDAY

 

Grade Price Change

 

Thai RSS3 (Dec) $1.85/kg unchanged

 

Thai RSS3 (Jan) $1.85/kg unchanged

 

Thai STR20 (Dec) $1.85/kg unchanged

 

Thai STR20 (Jan) $1.85/kg unchanged

 

Malaysia SMR20 (Dec) $1.80/kg unchanged

 

Malaysia SMR20 (Jan) $1.80/kg unchanged

 

Indonesia SIR20 (Dec) $0.80/lb unchanged

 

Indonesia SIR20 (Jan) $0.80/lb unchanged

 

Thai USS3 58 baht/kg – 1 baht

 

Thai 60-percent latex (drums, Dec) $1,450/tonne unchanged

 

Thai 60-percent latex (bulk, Dec) $1,300/tonne unchanged

Source:  Reuters

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