Most Gulf markets track oil, Asian shares higher | Reuters

Most Gulf markets track oil, Asian shares higher | Reuters

Most stock markets in the Gulf ended higher on Tuesday in line with oil prices and Asian shares buoyed by broad stimulus measures from China, although geopolitical tensions in the region limited gains.

Oil prices - a catalyst for the Gulf's financial markets - jumped more than 2% on news of monetary stimulus from top importer China and concerns that conflict in the Middle East could hit regional supply. At the same time, another hurricane threatened supply in the United States, the world's biggest crude producer.

People's Bank of China Governor Pan Gongsheng announced plans to lower borrowing costs, inject more funds into the economy, and ease households' mortgage repayment burden. Pan also said China would roll out structural monetary policy tools for the first time to help stabilise capital markets.

Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1.1%, led by a 0.5% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 6.6% increase in ACWA Power Company (2082.SE), opens new tab.

Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab gained 0.3%.

Aramco is planning to raise up to $3 billion in five and 10-year U.S. dollar-denominated sukuk, or Islamic bonds, according to two sources with direct knowledge of the matter and a term sheet reviewed by Reuters on Tuesday.

Dubai's main share index (.DFMGI), opens new tab added 0.6%, with toll operator Salik Co (SALIK.DU), opens new tab closing 3.3% higher.

In Abu Dhabi, the index (.FTFADGI), opens new tab inched 0.1% higher.

The Abu Dhabi bourse saw limited activity with low volatility. While rising oil prices are favorable, apprehensions about geopolitical tensions are limiting the potential for higher gains, said Joseph Dahrieh, Managing Principal at Tickmill.

Israel carried out a new wave of airstrikes on Hezbollah targets in Lebanon and said it would keep up pressure on the armed group as its Iran-backed foe fired rockets into Israel on Tuesday, amid growing fears of all-out war in the Middle East.

The Qatari benchmark (.QSI), opens new tab gained 0.5%, with Qatar Islamic Bank (QISB.QA), opens new tab rising 1.7%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.5%, with top lender Commercial International Bank (COMI.CA), opens new tab losing 0.6%.