Most stock markets in the Gulf closed higher on Monday as investors were focused on the outlook for interest rates ahead of this week's U.S. Federal Reserve policy meeting, overlooking the potential impact of the Israel-Gaza war.
The Federal Reserve meeting, which concludes on Wednesday, is likely to dominate a busy week that has U.S. employment data and earnings from tech heavyweight like Apple Inc (AAPL.O) on its calendar.
The Fed is widely expected to keep interest rates unchanged, possibly setting the course for stocks and bonds the rest for the year.
The Bank of England and the Bank of Japan will also announce policy decisions in the coming days.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, with digital solutions provider Elm Company (7203.SE) advancing 2.3%, a day after reporting a sharp rise in quarterly profit.
The Saudi stock market extended its rebound, thanks to company earnings, said Hani Abuagla, senior market analyst at XTB MENA.
"However, it could come under pressure as caution could dominate ahead of the Federal Reserve meeting."
The Qatari benchmark (.QSI) finished 1.7% higher, rebounding from its lowest in over three years, with all but one stock closing in positive territory, including Commercial Bank (COMB.QA), which jumped 4.5%. Telecoms firm Ooredoo (ORDS.QA) leapt 4.7%.
Dubai's main share index (.DFMGI) climbed 1.4%, with toll operator Salik (SALIK.DU) surging 5.6%.
In Abu Dhabi, the index (.FTFADGI) added 0.5%.
Israeli troops and tanks attacked Gaza's main northern city from the east and west on Monday, three days after it began ground operations in the Palestinian enclave that have increased international pressure for civilians to be protected.
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1.5% higher, led by an 11.6% surge in tobacco monopoly Eastern Company (EAST.CA).
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