Benchmark Tokyo rubber futures slid in thin trading on Tuesday after an initial rally, as Nikkei shares reversed gains. Trading was light as markets in greater China, South Korea, Singapore and Indonesia were shut for the Lunar New Year. Japan's Nikkei index .N225 surrendered modest gains to end lower on Tuesday, snapping a three-day rally as the market digested a slew of corporate earnings.

"Trade was light due to absence of Chinese investors," said Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co. The Tokyo Commodity Exchange (TOCOM) rubber contract for July delivery finished 3.6 yen, or 2.0 percent, lower at 179.1 yen ($1.63) per kg, falling from a 1-1/2-week high hit the previous day.

TOCOM's technically specified rubber (TSR) 20 futures contract for August delivery declined 2.0 percent to close at 150.6 yen per kg. "I expect the TOCOM to stay in a boxed range between 175 and 185 yen this week," Tazawa said. China's financial markets, including commodity futures, are closed this week for the Lunar New Year holiday. Chinese markets will resume trading on Feb. 11.

The Singapore Exchange is also shut on Tuesday and Wednesday for the Lunar New Year holiday. The dollar rose a tad to 109.93 yen against the Japanese yen. It had risen above 110 yen for the first time since Dec. 31 overnight.

Copyright Reuters, 2019