Benchmark Tokyo rubber futures erased early gains on Wednesday to end nearly flat after Shanghai futures hit a new eight-month low amid worries over supply glut.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, finished slightly higher on the back of a weaker yen against the dollar, brokers said.
"In Shanghai, there is still a lingering concern about oversupply," said a Tokyo-based broker.
The Tokyo Commodity Exchange rubber contract for October delivery finished 0.4 yen higher at 209.1 yen ($1.84) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery was up nearly 2 percent earlier in the session, before reversing gains to close 255 yuan lower at 13,305 yuan ($1,927) per tonne. It hit 13,225 yuan earlier in the day, the lowest since September 1, 2016.
Singapore's SICOM exchange was closed for a holiday. China's April producer price inflation cooled more than expected in a sign manufacturing activity may be losing momentum along with other sectors of the economy as domestic demand remains muted and the government cracks down on financial risks.