Mideast Stocks: Major Gulf Markets Gain on Progress in US-China Trade Talks

Major stock markets in the Gulf rose in early trade on Wednesday in line with Asian shares, on signs of progress in trade talks between the U.S. and China.

Top officials of both the countries said on Tuesday they had agreed on a framework to get their trade truce back on track and remove China's export restrictions on rare earths.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%.

Saudi Arabia's benchmark index - which traded after a four session break - advanced 1.2%, led by a 1.7% rise in Al Rajhi Bank and a 1.6% increase in oil giant Saudi Aramco.

The kingdom's crude oil supply to China is set to dip slightly in July, Reuters reported on Tuesday, citing trade sources, but still strong for a third straight month as the OPEC kingpin regains its market share supplying the world's top crude importer.

Dubai's main share index added 0.1%, helped by a 1.1% rise in blue-chip developer Emaar Properties.

In Abu Dhabi, the index inched 0.1% higher, with ADNOC Gas climbing 1.2%.

ADNOC Gas said on Tuesday it had taken a final investment decision on the first phase of its Rich Gas Development (RGD) Project, awarding $5 billion in contracts to expand and improve efficiency at the project.

Elsewhere, chemicals maker Borouge gained 0.6% after awarding a $531 million contract to ADNOC Logistics & Services for streamlining maritime deliveries.

Separately, the rush of financial firms setting up in Abu Dhabi to tap the oil-rich emirate's wealth funds and Middle East markets will continue at pace, the official in charge of expanding its financial hub has predicted.

The Qatari index rose 0.4%, led by a 0.4% increase in the Gulf's biggest lender Qatar National Bank.