TOKYO: Japanese rubber futures slumped on Thursday, giving up the previous day’s gain as expectations of faster policy tightening by the U.S. Federal Reserve reduced risk appetite, while resurgent COVID-19 cases added to pressure.

Osaka Exchange’s rubber contract for June delivery finished 5.8 yen, or 2.4%, down at 238.0 yen ($2.1) per kg.

The rubber contract on the Shanghai futures exchange for May delivery tumbled by 295 yuan to finish at 14,545 yuan ($2,281) a tonne.

A “very tight” job market and unabated inflation might require the Federal Reserve to raise interest rates sooner than expected and begin reducing its overall asset holdings as a second brake on the economy, U.S. central bank policymakers said in their meeting last month.