Mideast Stocks: Gulf markets rebound after overnight jump in oil prices

Mideast Stocks: Gulf markets rebound after overnight jump in oil prices

Gulf stock markets inched higher on Tuesday, as an overnight jump in crude oil prices outweighed concerns over tightening global monetary policies.

Oil prices jumped more than 4% on Monday, extending last week's gains after Saudi Arabia raised the prospect of the Organization of the Petroleum Exporting Countries and allies cutting output when they meet on Sept. 5.

The move is designed to balance the market in response to a potential supply boost from Iran should it hammer out a nuclear deal with the West.

Gains in the Gulf markets were capped by rising prospects of a slower global economic growth after U.S. Federal Reserve and European Central Bank officials adopted a more hawkish stance to combat a runaway inflation.

Saudi Arabia's benchmark index traded 0.4% higher, led by financial and energy stocks. Oil giant Saudi Aramco rose 0.7% and Al Rajhi Bank added 0.4%.

Saudi Steel Pipes soared nearly 5% and was the top percentage gainer on the index after the manufacturer bagged a new order for oil and gas steel pipes.

The Dubai index climbed 0.5%, recouping most of the losses suffered on Monday when investors turned bearish on tighter monetary policy outlook.

The gains were led by real estate stocks. Emaar Properties , the emirate's largest developer, jumped 1.5%.

Shares in Abu Dhabi also rose after a more than 1% decline in the previous session, with heavyweight lender First Abu Dhabi Bank edging 0.4% higher.

The Qatar index gave up early gains, with energy and industrial stocks trading sideways.