Aug. 21 (Bloomberg) -- Rubber extended losses for a third day as a sell-off in Asian stocks raised concern that regional demand may weaken for the commodity used in tires.
Rubber for delivery in January on Tokyo Commodity Exchange dropped as much as 1.1 percent to 257.9 yen a kilogram ($2,646 a metric ton), the lowest level for a most-active contract since Aug. 9, before settling at 260.6 yen. That extended losses for futures this year to 14 percent.
Asia’s benchmark stock index fell for a fifth day to trade at the lowest level in six weeks. Emerging market stocks were roiled this week amid speculation capital outflows will accelerate as the Federal Reserve is expected to curb bond- buying.
“A sell-off in Asian stocks sapped investor appetite for rubber futures,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co. in Tokyo.
Investors will be watching the release of the Federal Open Market Committee’s July meeting minutes today for hints as to when the stimulus may be curbed.
Rubber for delivery in January added 0.3 percent to 19,535 yuan ($3,190) a ton on the Shanghai Futures Exchange.
Thai rubber free-on-board dropped 0.4 percent to 80.95 baht ($2.55) a kilogram today, according to the Rubber Research Institute of Thailand.
--Editors: Brett Miller, Ovais Subhani