Malaysian palm oil futures have seen a decline, despite concerns over tight supply in Indonesia, the world's largest producer, due to weak demand data from China, a weak economic outlook, and a strong dollar. The midday break saw the March 2023 contract holding steady. Exports of palm oil products from Malaysia and Indonesia are expected to decrease this year. Meanwhile, rubber futures prices in Japan opened higher, driven by improved demand sentiment in China. However, Japanese factory activity fell at its fastest pace in 26 months in December 2022 due to a global economic slowdown, and China's manufacturing activity also dropped sharply in the same month.