SINGAPORE: Japanese rubber futures fell for the third consecutive day on Wednesday to post their lowest closing in almost two weeks, weighed down by soft economic data from top consumer China and lower oil prices.

The Osaka Exchange (OSE) rubber contract for February delivery closed down 7.4 yen, or 2.06%, at 351.6 yen ($2.42) per kg, finishing at its weakest level since Aug. 23. The January rubber contract on the Shanghai Futures Exchange (SHFE) closed down 230 yuan, or 1.41%, at 16,075 yuan ($2,259.88) per metric ton.

Growth in China’s services sector activity slowed in August despite the summer travel peak, prompting some firms to cut staff amid concerns about rising costs, a private-sector survey showed.

With factory owners trimming product prices to stay competitive, consumers tightening their belts and the ailing property sector failing to see a meaningful rebound, the economy faces increasing challenges alongside external geopolitical uncertainties.

Oil prices fell to their lowest since December on Wednesday, extending the previous day’s plunge of more than 4%, on expectations that a political dispute halting Libyan exports could be resolved and concerns over lower global demand growth.

Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. The safe-haven yen last traded up about 0.2% at 145.15 per dollar, after a 1% rally overnight as traders ducked for cover following the worst sell-off in almost a month on Wall Street and big losses for Asian stocks.

A stronger currency makes yen-denominated assets less affordable to overseas buyers.

The front-month rubber contract on Singapore Exchange’s SICOM platform for October delivery last traded at 175.6 US cents per kg, down 0.7%.