SINGAPORE: Japanese rubber futures fell on Monday, tracking losses in the Shanghai market and weaker domestic equities as continued concerns over a global economic slowdown weighed on sentiment.

The Osaka Exchange rubber contract for May delivery was down 3.2 yen, or 1.4%, at 227.3 yen ($1.67) per kg as of 0200 GMT. The rubber contract on the Shanghai futures exchange for May delivery was down 235 yuan, or 1.8%, at 12,880 yuan ($1,847) per tonne.

Japan’s benchmark Nikkei share average opened down 0.90%. The yen was last 0.6% stronger at 135.91 per dollar, after having touched a high of 135.80 earlier in the session. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.

China’s business confidence hit its lowest since at least January 2013, a survey by World Economics showed on Monday, reflecting the impact of surging COVID-19 cases on economic activity and hinting at a possible recession next year.

Streets in major Chinese cities were eerily quiet on Sunday as people stayed home to protect themselves from a surge in COVID-19 cases that have hit urban centres from north to south.

Mainland China’s Health Commission reported 1,995 new symptomatic coronavirus cases for Dec. 18, compared with 2,097 new cases a day earlier.

Asia’s stock markets made a wobbly start to the final full trading week of 2022, with the prospect of interest rates rising further next year taking the edge off the festive cheer.

The front-month rubber contract on Singapore Exchange’s SICOM platform for January delivery last traded at 136.8 US cents per kg, down 0.4%.