Kuala lumpur: The Kuala Lumpur rubber market rebounded from recent losses to close higher on Friday, driven by gains in regional rubber futures markets. This comes amid concerns over potential supply disruptions due to heavy rain in Thailand and tropical storm warnings, according to a dealer.

According to BERNAMA News Agency, market sentiment was further buoyed by gains in Japanese rubber futures, supported by a notable 24.4 per cent increase in Tesla's China-made electric vehicle sales in June. This surge has improved the outlook for tyre demand, while firm raw latex prices in Thailand also added support. Data from Zhuochuang Information Rubber Industry Observation revealed that raw latex prices in Thailand, the world's leading rubber producer, averaged 73.76 baht (US$2.23) per kilogram in the first half of 2026, reflecting a 16.54 per cent year-on-year increase.

The dealer also highlighted that firmer crude oil prices and the growing expectation that the United States Federal Reserve may adopt a less aggressive monetary policy have further bolstered market sentiment. At the time of reporting, Brent crude oil prices had risen by 0.42 per cent to US$72.08 per barrel.

However, the dealer noted that gains were partially limited by slower growth in China's services sector and weaker US factory orders, which have dampened market sentiment. Additionally, US jobs growth showed signs of moderation, with the economy adding 57,000 jobs in June, indicating a slower economic momentum.

At 3 pm today, the price of Standard Malaysian Rubber 20 (SMR 20) increased by 12 sen to reach 872.50 sen per kg, while latex-in-bulk remained unchanged at 746 sen per kg.