SINGAPORE: Japanese rubber futures declined on Thursday, weighed down by prospects of softer global demand for the commodity, although a weaker yen limited the losses.

The Osaka Exchange (OSE) rubber contract for May delivery closed down 5.1 yen, or 1.37%, at 365.9 yen ($2.34) per kg. The May rubber contract on the Shanghai Futures Exchange (SHFE) fell 390 yuan, or 2.17%, to 17,595 yuan ($2,410.70) per metric ton.

Economic data released this week showed an unexpected weakness in Chinese consumption, threatening to drag on the economy amid Trump’s looming tariff threats and indicating that Beijing’s policy efforts to stimulate growth this year have yet to turn the corner.

China is widely expected to leave its benchmark lending rates unchanged on Friday, a Reuters poll showed, as falling yields, shrinking net interest margins and a weakening yuan create limits for immediate monetary easing.

Oil prices fell in Asian trade after the US Federal Reserve cautioned that it would slow the pace of interest rate cuts in the coming year, which could hurt economic growth and reduce fuel demand. Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.