Kuala lumpur: The Kuala Lumpur rubber market concluded on a higher note, buoyed by gains in the Shanghai rubber futures market which were spurred by positive Chinese economic indicators, a dealer reported.

According to BERNAMA News Agency, the upward trend in Shanghai rubber futures was influenced by stronger crude oil prices and optimistic economic data from China. Brent crude prices experienced an increase of 1.77%, reaching US$95.96 per barrel.

China's industrial sector showed significant growth as reported by the National Bureau of Statistics, with industrial firms achieving a 24.7% profit increase in April compared to the previous year, up from a 15.8% rise in March. This data contributed to the positive sentiment within the rubber market.

Market dynamics were further enhanced by favorable developments in the European automotive sector and the European Union's legislative advancements concerning a trade deal with the United States. The European Automobile Manufacturers' Association noted that new vehicle registrations hit 1.15 million units in April, marking a seven percent year-on-year increase, driven by robust demand for electric and hybrid vehicles.

The EU's legislative move to eliminate import duties on numerous US goods is expected to prevent the imposition of higher tariffs on EU cars and other products by the US administration. This legislative progress added to the market's optimistic outlook.

However, potential market growth faced limitations due to renewed conflicts in West Asia and concerns about inflationary pressures from a prolonged conflict. The US and Iran resumed open hostilities with air strikes, lowering expectations for a peace agreement.

By 3 pm, the price of Standard Malaysian Rubber (SMR) 20 advanced by 15.5 sen to 898 sen per kilogram, while latex-in-bulk increased by 0.5 sen to 785.5 sen per kilogram.