SINGAPORE: Japanese rubber futures dipped for a second straight session to a four-day low on Wednesday as weaker equities and a stronger yen weighed on investor sentiment, although higher oil prices limited losses.

The Osaka Exchange (OSE) rubber contract for July delivery closed down 0.1 yen, or 0.03%, at 296 yen ($1.97) per kg, the lowest close since Feb. 16. The rubber contract on the Shanghai Futures Exchange (SHFE) for May delivery fell 20 yuan to finish at 13,550 yuan ($1,885.90) per metric ton.

Japan’s benchmark Nikkei average finished lower as jitters ahead of Nvidia earnings gripped investors. The yen strengthened to 150.01 against the dollar, after hovering near a three-month low in previous sessions.

A stronger currency makes yen-denominated assets less affordable to overseas buyers. Japanese manufacturers’ business morale soured sharply in February, the Reuters Tankan survey found.

Toyota Motor, the world’s biggest automaker and pace-setter of Japan’s annual spring labour-management wage offensive, held off from offering responses to its union’s demand for hefty pay hikes and record bonuses, raising uncertainty about expectations for rosy wage negotiations.

Oil prices rose on Wednesday amid concerns over attacks on shipping in the Red Sea and growing expectations that US rate cuts will take longer than thought.

Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. Indonesia announced new incentives to encourage sales of electric vehicles (EV) to boost take-up of environment-friendlier cars and attract EV investment.

China’s stock exchanges said major quant fund Lingjun Investment had broken rules on orderly trading and barred it from buying and selling for three days, as part of wider regulatory efforts to revive market confidence.

The front-month rubber contract on Singapore Exchange’s SICOM platform for March delivery was last up 0.06% at 155.4 US cents per kg.