Japanese rubber futures extended their decline on Tuesday, as a stronger yen made the commodity less affordable for other currency holders.
The Osaka Exchange (OSE) rubber contract for May delivery 
TRB1!, TRB1! was down 2 yen, or 0.61%, at 328.2 yen($2.11) per kg, as of 0205 GMT.
The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery RSS31! rose 45 yuan, or 0.3%, to 15,285 yuan ($2,160.18) per metric ton.
The most-active January butadiene rubber contract on the SHFE (SHBRv1) gained 245 yuan, or 2.38%, to 10,520 yuan per ton.
The yen 
USDJPY strengthened 0.47% against the dollar to 155.45, amid expectations of an interest rate hike by the Bank of Japan.
Japan’s Nikkei 
NI225 rose 0.2% in early trade following a nearly 2% decline on Monday.
Oil prices increased by over 1% on OPEC’s decision to leave output levels unchanged in the first quarter of 2026.
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 thundershowers and accumulated rain from December 4-7.
An official PMI survey on Sunday showed that China’s factory activity shrank for an eighth month in November, reflecting manufacturers’ difficulty in sustaining a recovery after COVID-19, compounded by a trade war with the U.S.
Meanwhile, a private-sector survey showed that production growth came to a halt and new orders slowed, though firms were generally positive about sales and output in the next 12 months on supportive government policies.
The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery TF1! last traded at 172 U.S. cents per kg, up 0.1%.
AloJapan.com