TOKYO: Japanese rubber futures dropped to a nearly 2-month low on Wednesday, tracking Shanghai market’s plunge, amid worries over a resurgence of the COVID-19 pandemic cases in China and Japan, and on fears of a global economic slowdown.

The Osaka Exchange rubber contract for December delivery closed 6.6 yen, or 2.6%, lower at 243.8 yen ($1.8) per kg, after hitting 243.4 yen earlier in the session, the lowest since May 19.

The rubber contract on the Shanghai futures exchange for September delivery was down 470 yuan to finish at 12,190 yuan ($1,814) per tonne. It dove to as low as 12,035 yuan, the lowest since August 5, 2020, earlier in the session.

Residents in the financial hub of Shanghai have been increasingly nervous about a persistent COVID-19 outbreak of dozens of infections a day, just weeks after a painful two-month citywide lockdown was lifted last month.

The Tokyo Metropolitan Government reported on Tuesday its daily coronavirus cases hit 11,511, exceeding 10,000 for the first time since March 16. The number rose to 16,878 on Wednesday.

China will step up policy support for the real economy, Ruan Jianhong, an official at the central bank, said on Wednesday, adding the country’s macro leverage ratio is expected to rise due to slowing growth and counter-cyclical policies.

The front-month rubber contract on Singapore Exchange’s SICOM platform for August delivery last traded at 156.0 US cents per kg, down 2.9%.