TOKYO: Japanese rubber futures slid to a 5-1/2-week low on Wednesday as a slump in the Tokyo stock market weighed on sentiment, while China’s persistent COVID lockdowns dampened risk appetite amid fears of slowing demand in the top buyer.

The Osaka Exchange rubber contract for October delivery finished 3.8 yen, or 1.5%, lower at 247.6 yen ($1.9) per kg, after hitting the lowest since March 18 of 246.5 yen earlier in the session.

Japan’s Nikkei share average closed at a two-week low on Wednesday on worries over a global economic slowdown and the impact of COVID lockdowns in China on domestic corporate results.

China has put Shanghai under a lockdown since late March and the neighbouring city Kunshan has also tightened curbs to control the country’s biggest COVID outbreak since late 2019.

Still, the rubber contract on the Shanghai futures exchange for September delivery rose 40 yuan to finish at 12,700 yuan ($1,939) per tonne after China stocks rebounded sharply from two-year lows.

The front-month rubber contract on Singapore Exchange’s SICOM platform for May delivery last traded at 160.0 US cents per kg, down 2.0%. Toyota Motor Corp on Wednesday posted record high global production in March, as overseas production made up for a drop off at home, highlighting the impact of factory stoppages and weaker consumer demand in Japan.