Most Gulf bourses retreat in line with oil prices, Asian shares | Reuters

Most Gulf bourses retreat in line with oil prices, Asian shares | Reuters

Most stock markets in the Gulf retreated in early trade on Tuesday, tracking oil prices and Asian shares lower, although the Abu Dhabi index bucked the trend to trade higher.

MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) retreated 1.33%, as jitters about an escalation in Sino-U.S. tension over U.S. House of Representatives Speaker Nancy Pelosi's imminent visit to Taiwan, added to fears of a global recession.

Saudi Arabia's benchmark index (.TASI) dropped 0.7%, weighed down by a 1.1% fall in Al Rajhi Bank (1120.SE) and a 2.3% decline in Riyad Bank (1010.SE).

The kingdom will push OPEC+ to increase oil production at an upcoming meeting on Wednesday, a Fox Business news reporter said on Monday. read more

The White House has said it anticipates major oil producers in the OPEC+ alliance will increase crude production following President Joe Biden's trip to the Middle East last month.

Crude prices, a key catalyst for the Gulf's financial market, edged lower as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as major crude producers meet this week to determine whether to increase supply.

Dubai's main share index (.DFMGI) lost 0.6%, hit by a 2.1% drop in top lender Emirates NBD (ENBD.DU).

The Qatari benchmark (.QSI) declined 1.4%, as most of the stocks on the index were in negative territory including Qatar Islamic Bank (QISB.QA), which was down 2.5%.

In Abu Dhabi, the shares (.FTFADGI), however, gained 0.7%, nearing one-month high, helped by a 0.9% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).