SINGAPORE: Japanese rubber futures extended losses to a second session on Thursday, as investors weighed easing weather-related supply disruptions and lower synthetic rubber prices against a weaker yen.

The March Osaka Exchange (OSE) rubber contract closed down 0.9 yen, or 0.23%, at 385.7 yen ($2.54) per kg. The January rubber contract on the Shanghai Futures Exchange (SHFE) fell 70 yuan, or 0.38%, to finish at 18,170 yuan ($2,553.15) per metric ton.

The most active November butadiene rubber contract on the SHFE dropped by 175 yuan, or 1.14%, to 15,155 yuan ($2,129.50) per metric ton. Upstream rubber supply is generally recovering, increasing pressure on prices, Chinese futures trading site Beite Futures said in a note. Less rains and isolated thundershowers are likely across the country, said top producer Thailand’s meteorological agency.

The US dollar last traded at 152.17 yen after pushing a near three-month high against the currency on Wednesday, underpinned by expectations for a slower pace of US rate cuts and growing odds of a second Donald Trump presidency.

A weaker currency makes yen-denominated assets more affordable to overseas buyers. Chinese smartphone maker Xiaomi is expected to complete the expansion of its electric vehicles factory in mid-2025, government-backed Chinese media reported on Wednesday.

The US-China tech war is all but certain to heat up no matter whether Trump or Vice President Kamala Harris wins the Nov. 5 presidential election, with new efforts to slow the flow of Chinese smart cars and other imports into the US expected.

Vehicle sales could influence the intensity of automobile manufacturing, which involves rubber-made tyres. The front-month November rubber contract on the Singapore Exchange’s SICOM platform last traded at 195.1 US cents per kg, up 0.4%.