Kuala Lumpur: The Malaysian rubber market maintained its downward trajectory on Wednesday, primarily influenced by declines in regional rubber futures markets triggered by concerns of an escalating global trade war, a dealer stated.

According to BERNAMA News Agency, Japanese rubber futures experienced a drop on Wednesday due to uncertainties surrounding tariffs imposed by United States President Donald Trump and their potential repercussions on the global economy. Despite these challenges, further declines were somewhat mitigated by optimism for increased stimulus from China, following the release of better-than-expected Chinese economic data.

The dealer highlighted that China’s economy exceeded expectations in the first quarter of 2025, with a gross domestic product (GDP) increase of 5.4 percent year-on-year. Additionally, China’s industrial production saw a rise of 7.7 percent year-on-year in March, surpassing forecasts which anticipated it would remain steady at 5.9 percent, consistent with the January-February period.

Moreover, China’s March retail sales, an essential indicator of consumption, jumped by 5.9 percent, exceeding expectations of a 4.2 percent growth.

At 3 pm, the Malaysian Rubber Board reported a decrease in the price of Standard Malaysian Rubber (SMR) 20, which fell by 18 sen to 739.5 sen per kilogramme, while latex in bulk declined by 5.5 sen to 649 sen per kg.