(Updates prices to market close, adds quote) Oct 7 (Reuters) – * Japanese rubber futures declined on Tuesday amid subdued market activity, weighed down by thin trading due to China's National Day holiday and weak international demand, though a softer yen limited further losses. * The Osaka Exchange (OSE) rubber contract for March delivery ended the day down 1.6 yen, or 0.52%, at 303.4 yen ($2.01) per kg. * Due to the absence of trading volumes during China's Golden Week, futures prices have reflected muted international demand despite some support from recent yen fluctuations, said Farah Miller, founder of independent rubber-focused firm Helixtap Technologies. * Additionally, producers are waiting for raw material prices to decrease in line with futures in order to improve their margins, while the market has also factored in a delay to the EU's deforestation regulation, resulting in more conservative pricing, Miller added. * The Chinese National Day holiday runs from October 1-8. * The yen slid 0.1% to 150.46 on the dollar and touched 150.62 earlier in the session, the weakest level in two months. * A weaker currency makes yen-denominated assets more affordable to overseas buyers. * Japan's Nikkei reached yet another record high earlier in the session driven by optimism over the weekend election of fiscal and monetary dove Sanae Takaichi. * Oil prices extended gains on a smaller-than-expected OPEC+ output hike. * Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil. * Top rubber producer Thailand's meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows from October 6-8. * The front-month rubber contract on Singapore Exchange's SICOM platform for November delivery last traded flat at 171.3 U.S. cents per kg. ($1 = 150.6300 yen) (Reporting by Lucas Liew; Editing by Rashmi Aich and Sonia Cheema)
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