Tokyo futures open lower as global growth worries persist

TOKYO, (Reuters): Key TOCOM rubber futures edged down on Monday, taking cues from weaker oil and Asian stock prices, with investors continuing to fret about global growth despite steps from major central banks to bolster their economies.

The key Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> was changing hands 3.4 yen lower at 253.6 yen as of 0107 GMT.

The benchmark contract climbed as high as 259.9 yen on Friday, just shy of a three-and-a-half month peak of 260 yen reached on Wednesday.

Markets last week oscillated between rallying on stimulus action from central banks and falling as participants focused on the weak economic conditions that prompted those steps in the first place.

Euro zone states are preparing to allow the bloc’s permanent bailout fund to leverage its capital in the same way as its predecessor so it can reach a capacity of more than 2 trillion euros and rescue big countries if necessary, Der Spiegel said on Sunday.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 5.0 per cent from last Friday, the bourse said on Friday.