SINGAPORE: Japanese rubber futures opened higher on Tuesday, supported by gains in oil prices amid supply concerns, while a weaker yen also lent some support.

The Osaka Exchange (OSE) rubber contract for August delivery was up 2.1 yen, or 0.9%, at 227.1 yen ($1.67) per kg, as of 0212 GMT. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery was up 5 yuan, or 0.04%, at 12,470 yuan ($1,797.81) per tonne.

Japan’s benchmark Nikkei average opened down 0.12%. Oil prices edged up after industry executives flagged concerns about limited spare capacity in the market and uncertainty over Russian supplies while demand from top crude importer China is recovering.

The natural rubber market is helped by stronger oil prices as manufacturers are incentivised to shift away from synthetic rubber that is derived from oil, driving natural rubber prices higher.

The Japanese yen slipped ahead of the final policy meeting for Bank of Japan Governor Haruhiko Kuroda on Thursday and Friday. * A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

Asian financial markets were little changed as investors awaited a congressional testimony from Federal Reserve chairman Jerome Powell due to start later in the day for clues on the central bank’s next move on interest rates.

The front-month rubber contract on Singapore Exchange’s SICOM platform for April delivery last traded at 139.00 US cents per kg, down 0.2%.