SINGAPORE: Japanese rubber futures edged higher on Thursday, tracking gains in the Shanghai market, despite heightened demand concerns amid rising COVID-19 cases in top consumer China.

The Osaka Exchange rubber contract for April delivery was up 0.8 yen, or 0.4%, at 218.9 yen ($1.50) per kg, as of 0200 GMT. The rubber contract on the Shanghai futures exchange for January delivery was up 40 yuan, or 0.3%, at 12,615 yuan ($1,737) per tonne.

Japan’s benchmark Nikkei share average opened 0.93% lower. Millions of residents of China’s southern manufacturing hub of Guangzhou were told on Wednesday to get tested for COVID-19, as infections topped two thousand for two days running in the city’s worst outbreak so far.

Japan’s Nissan Motor Co lifted its full-year profit forecast on Wednesday, buoyed by higher-margin sales and a weaker yen, and reiterated talks with top shareholder Renault about revamping their alliance were “open and constructive”.

Asian share markets were tense on Thursday and the dollar held on to its overnight gains before the big test of a US consumer inflation report, while market sentiment took a dive as the likely collapse of a major crypto exchange spooked investors.

The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 126.2 US cents per kg, down 1.2%.