Tokyo Futures Slip On Worries Of Oil Price Surge On Econ Growth

Tokyo rubber futures edged lower on Thursday (Mar 3) on worries that the unrest in Libya and the broader Middle East could cause global economic growth to slow, shrugging off the favorable impact of soaring oil costs on natural rubber prices.
The key Tokyo Commodity Exchange rubber contract for August delivery was almost flat at 475.5 yen, down 0.4 yen as of 0123 GMT.
"Worries that surging oil prices could hamper the growth of the economy are making invesotrs cautious, though a steep fall is unlikely as heightening supply from producing countries supports the bottom line," Hiroyuki Kikukawa, general manager at trading firm Nihon Unicom, said.
The most active Shanghai rubber contract for May delivery rose 1.5 percent to 39,440 yuan per tonne as of 0128 GMT, up from the settlement price of 38,860 yuan on Wednesday (Mar 2).
Oil rose to settle at its highest level since August 2008 on Wednesday (Mar 2) after an airstrike near Libya's oil infrastructure raised more fears the OPEC nation's oil sector could become a target in embattled leader Muammar Gaddafi's efforts to hold power.
The euro rose to a near four-month high against the dollar on Wednesday (Mar 2) and looked set to extend gains on growing expectations interest rates in the euro zone will rise earlier than those in the United States.
(Reuters, March 3, 2011)