SINGAPORE: Japanese rubber futures slid more than 2% on Tuesday as concerns over demand in top importer China and lower oil prices weighed on the market.

The Osaka Exchange (OSE) rubber contract for June delivery closed down 5.9 yen, or 2.30%, at 251.0 yen ($1.74) er kg. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery was down 150 yuan, or 1.1%, at 13,445 yuan ($1,877.74) per metric ton.

The contract has fallen for five consecutive sessions on worries over China’s economic growth and rising geopolitical tensions. Oil prices fell over 3% on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output. The market rose slightly on Tuesday. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Japan’s benchmark Nikkei average closed up 1.16%. It hit its highest level since March 1990 during Tuesday’s trading session, as investors snapped up chip-related stocks tracking an overnight Wall Street rally in technology shares.

Toyota Motor restarted its Japanese vehicle plants on Monday but, given the impact of the New Year’s Day earthquake, would decide separately about operations from Jan. 15.

The Japanese yen strengthened 0.12% to trade at 144.05 against the dollar as traders reaffirmed their bets for a slew of Federal Reserve rate cuts this year. A stronger yen makes yen-denominated assets less affordable to overseas buyers.

The front-month rubber contract on the Singapore Exchange’s SICOM platform for February delivery last traded at 149.40 US cents per kg, up 0.13%.