TOKYO: Japanese rubber futures climbed on Wednesday, buoyed by a rally in the Shanghai market and the yen’s drop against the U.S. dollar.

The dollar gained 0.44% on the safe-haven yen. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

Osaka Exchange’s rubber contract for May delivery finished 2.1 yen, or 0.9%, higher at 229.8 yen ($2.0) per kg.

The rubber contract on the Shanghai futures exchange for May delivery rose 160 yuan to finish at 14,405 yuan ($2,261) per tonne.

Still, some investors remained cautious as Omicron infections are multiplying across Europe, the United States and Asia, including in Japan, where a single cluster of COVID-19 cases at a military base has grown to at least 180.

The front-month rubber contract on Singapore’s SICOM exchange for January delivery last traded at 168.8 U.S. cents per kg, up 0.4%.