SINGAPORE: Japanese rubber futures dipped as US-China trade tensions weighed on sentiments, countering the boost provided by a weaker yen and stronger oil.

The Osaka Exchange (OSE) rubber contract for April delivery closed down 10.9 yen, or 2.97%, at 356.5 yen($2.30) per kg. The contract has gained 1.86% this week.

The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery closed down 390 yuan, or 2.2%, to 17,325 yuan($2,390.15) per metric ton. The most active January butadiene rubber contract on the SHFE closed down 500 yuan, or 3.79%, to 12,690 yuan($1,750.71) per metric ton.

The US dollar was last up 0.2% at 154.84 yen as Japan’s core inflation in October came in 2.3% higher from a year earlier, data showed on Friday, keeping pressure on the central bank to raise its still-low interest rates.

A weaker currency makes yen-denominated assets more affordable to overseas buyers. Oil prices extended gains and headed for a weekly uptick of more than 4% as the Russia-Ukraine war intensified, with Russian President Vladimir Putin warning of a global conflict. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Top rubber producer Thailand’s meteorological agency warned of heavy rains that may cause flash floods from Nov. 22-28.