TOKYO: Japanese rubber futures fell on Thursday as the Omicron coronavirus variant heightened concerns over the prospect of slower global economic recovery and tepid demand for the material while a firmer yen added to the pressure.

The Osaka Exchange rubber contract for May delivery was down 3.9 yen, or 1.6%, at 242.0 yen ($2.1) per kg, as of 0217 GMT.

The United States on Wednesday identified its first known COVID case caused by the Omicron variant, discovered in a fully vaccinated patient who travelled to South Africa, as scientists continue to study the risks the new version could pose.

The strain has been found in places as widespread as Australia, Britain, Canada and Japan, even as those countries rapidly tighten their borders.

Japan rubber futures recoup some losses, investors remain on edge

The safe-haven yen hovered near a seven-week high against the dollar as the Omicron variant continued to spread globally. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.

The rubber contract on the Shanghai futures exchange for May delivery was down 205 yuan, or 1.4%, at 14,890 yuan ($2,338) per tonne on Thursday.

The front-month rubber contract on Singapore's SICOM exchange for January delivery last traded at 174.3 US cents per kg, down 2.6%.