Kuala lumpur: The Malaysian rubber market ended slightly higher on Wednesday, buoyed by China's economic stimulus measures and optimism regarding a potential rate cut by the United States Federal Reserve (Fed), according to a dealer.

According to BERNAMA News Agency, China has introduced new initiatives to boost services consumption, including opening sectors such as internet and culture, and supporting international sports events to foster growth. The Ministry of Industry and Information Technology, along with seven other agencies, announced China's target of achieving 32.3 million vehicle sales by 2025 to stabilize growth in the auto sector.

Despite these positive developments, further gains in the rubber market were limited by weaknesses in regional rubber futures markets, a stronger ringgit against the US dollar, declines in crude oil prices, and uncertainty within the auto sector. Japanese rubber futures experienced losses due to a firmer yen and a cautious outlook for the auto sector.

In a related development, Thailand's meteorological agency issued a warning about heavy rains and accumulations from September 17-20, 2025. As Thailand is the world's largest natural rubber producer, continuous rain could lead to short-term bullish sentiment in the rubber market, as traders anticipate a tighter supply.

The dealer also commented on the slight dip in oil prices on Wednesday, following a previous 1.0 percent gain. This change was influenced by geopolitical tensions and expectations of a potential interest rate cut by the US Fed. At the time of writing, Brent crude oil decreased by 0.54 percent to US$68.08 per barrel.

As of 3 pm, the Malaysian Rubber Board reported that the price of Standard Malaysian Rubber 20 (SMR 20) increased by 4.0 sen to 741.0 sen per kilogram, while latex-in-bulk rose by 1.0 sen to 576.5 sen per kilogram.