SINGAPORE: Japanese rubber futures recorded their biggest dip since April on Tuesday amid sliding Asian stocks and a weak Nikkei.

The Osaka Exchange (OSE) rubber contract for March delivery closed down 4.3 yen, or 1.8%, at 232.5 yen ($1.55) per kg.

Japan’s benchmark Nikkei average closed down 1.64%, falling to a four-month low on Tuesday as sentiment soured amid higher U.S. yields and the Federal Reserve’s pledge of an extended period of tight financial conditions.

The yen was last at 149.915 against the dollar, just off Tuesday’s fresh low of 149.93. A weaker yen makes assets denominated by the currency more affordable for overseas buyers.

Asian shares slid on Tuesday to their lowest this year as worries over higher U.S interest rates for longer gripped markets, while the yen wobbled near a one-year low, keeping traders on alert for a possible intervention.

Japanese rubber futures lower on profit-taking ahead of China holiday

Oil prices slipped by around 1% in early Asian trade on Tuesday, after falling to a three-week low in the previous session, on a stronger U.S. dollar, rising U.S. bond yields and mixed supply signals.

Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.

The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 139.6 U.S. cents per kg, down 0.7%.

China’s financial markets are closed until Oct. 6 for the Golden Week holiday. Trading will resume on Oct. 9.