SINGAPORE: Japanese rubber futures ended almost flat on Wednesday, bouncing back from a near 4-month low earlier in the session, tracking Shanghai gains and a softer yen. Osaka Exchange’s rubber contract for December delivery finished largely unchanged at 205.2 yen ($1.42) per kg.

Earlier, the benchmark contract sank to 203.0 yen, its lowest since March 22. The rubber contract on the Shanghai futures exchange for September delivery rose 125 yuan to finish at 12,175 yuan ($1,681.84) per metric ton. Japan’s benchmark Nikkei average closed down 0.25%. Q3 is likely to be pretty bearish, although rubber prices at present are already low, so everything is in range until further news, said a Singapore-based trader. China’s factory activity growth slowed in June, a private sector survey showed on Monday, dragging down major trade partner Japan, whose manufacturing activity for the month saw a contraction.

Oil prices fell on Wednesday, reversing some gains made after Saudi Arabia and Russia announced they would extend and deepen output cuts into August, as concerns over a global economic slowdown weighed on market sentiment. Lower oil prices incentivise manufacturers to shift to rival synthetic rubber, derived from oil, hindering the natural rubber market. The yen depreciated 0.19% against the dollar to 144.74, about half a yen below the 145-level that spurred intervention by Japanese authorities last autumn. A weak yen makes assets dominated in the currency more affordable for overseas buyers. Asian shares fell on Wednesday after a slowdown in China’s services activity dented sentiment and as markets turned their focus to the release of Federal Reserve minutes and a key US jobs report later in the week for the rate outlook ahead.