SINGAPORE: Japanese rubber futures closed at a one-month low on Thursday, as market participants reacted to elevated bond yields despite recent easing. The Osaka Exchange (OSE) rubber contract for March delivery closed down 4 yen, or 1.7%, at 229.7 yen ($1.54) per kg.

“Escalating bond yields are triggering global apprehension, leading to a selloff in equities as higher yields and prolonged higher rates diminish stock attractiveness,” a Singapore-based trader said.

“This shift in sentiment is extending to commodities, evidenced by sell-offs in oil, copper, and subsequently rubber.” Asian shares rebounded from 11-month lows on Thursday as a plunge in oil prices and softer US labour data helped pull Treasury yields off 16-year peaks, although a looming US payrolls report could make or break the rally.

Japanese authorities refrained from disclosing whether they had stepped into the market to prop up the yen, keeping markets on alert for the chance of yen-buying intervention.

After sliding below the psychologically important 150 per dollar mark to its weakest level in a year, the yen strengthened sharply on Tuesday, leading some market participants to believe Tokyo had intervened.

The yen was last up 0.2% at 148.8. A stronger yen makes assets denominated by the currency less affordable for overseas buyers. Japan’s benchmark Nikkei average closed up 1.8%, snapping a five-day losing streak to record its biggest one-day percentage jump in three months.

The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 138.9 US cents per kg, down 0.5%. China’s financial markets are closed until Oct. 6 for the Golden Week holiday. Trading will resume on Oct 9.