SINGAPORE: Japanese rubber futures slid on Thursday, as investors took profits ahead of the Lunar New Year holiday in top buyer China, while concerns that the US interest rate hike may slow a recovery in the global economy also weighed.

“Chinese traders going on holiday might have readjusted their positions,” a Singapore-based trader said. Mainland Chinese markets will be shut for China’s week-long Lunar New Year holiday, which starts Jan. 31.

The Osaka Exchange rubber contract for July delivery finished 2.5 yen, or 1.0%, lower at 236.5 yen ($2.1) per kg. In its latest policy update, the US Federal Reserve flagged it is likely to raise interest rates in March and reaffirmed plans to end its bond purchases that month before launching a significant reduction in its asset holdings.

Adding to the pressure, Asian shares plunged to their lowest in nearly 15 months and the dollar strengthened. The rubber contract on the Shanghai futures exchange for May delivery was down 270 yuan to finish at 14,105 yuan ($2,220) per tonne.