The benchmark rubber contract on the Tokyo Commodity Exchange was down 4.9 yen, or 1.7 percent, to settle at 282.8 yen ($3.36) per kg.

The most-active rubber contract on the Shanghai futures exchange for May delivery was down 385 yuan to finish at 24,895 yuan ($4,000) per tonne.

The front-month January rubber contract on Singapore's SICOM exchange was last traded at $2.89 per kg, down 3.3 cents.

"An inconclusive talks about the US fiscal crisis was a major factor that triggered selling, while falling oil prices was an additional negative factor that weighed on TOCOM prices," said a Bangkok-based dealer.

Talks to avoid a US fiscal crisis stalled on Wednesday as President Barack Obama accused opponents of holding a personal grudge against him while the top Republican negotiator slammed the president for opposing their plan.

 Brent crude slipped on Thursday to trade around $110 a barrel as investors took profit after recent gains as talks to avert a US fiscal crisis stalled, stoking worries about demand in the world's biggest oil consumer.

 However, dealers said TOCOM prices could rebound on Friday after prices finished above a major support level of 280 yen.

Center>Copyright Reuters, 2012