By Amna Mariyam
Most Gulf stocks rebounded on Wednesday, buoyed by corporate earnings announcements and optimism following U.S. President Donald Trump's trade deal with Japan, which raised hopes for additional agreements before an impending tariff deadline.
Trump said on Tuesday that the U.S. and Japan had reached a trade deal that includes a 15% tariff on U.S. imports from Japan. It followed an agreement with the Philippines by which the U.S. will collect a 19% tariff rate on imports from there.
While the increasing imposition of tariffs around the world poses risks to global economic growth and oil demand, the recent U.S.-Japan deal helped ease investor concerns and supported oil prices.
Saudi Arabia's benchmark index TADAWUL:TASI advanced 1.3%, led by a 1.1% gain in Al Rajhi Bank TADAWUL:1120 and a 2.3% increase in Saudi National Bank TADAWUL:1180, the country's largest lender by assets. Earlier this week, the duo reported a rise in quarterly earnings.
The Saudi stock market may experience a solid rebound if earnings releases continue to be positive and external pressures diminish, said Milad Azar, market analyst at XTB MENA.
"A potential trade deal with the European Union, with the August 1 deadline approaching, could also provide a boost."
The Abu Dhabi index ADX:FADGI jumped 1.2%, with First Abu Dhabi Bank (FAB) ADX:FAB, the United Arab Emirates' largest lender, surging 5% - its biggest intraday gain in a month - after beating second-quarter profit estimates on strong revenue growth.
Elsewhere, Bank of Sharjah ADX:BOS soared 10%, a day after posting a sharp rise in half-yearly profit.
Among other gainers, Space42 ADX:SPACE42 advanced 1% after securing a $695.5 million facility to fund next-generation UAE satellites.
Dubai's main share index DFM:DFMGI finished 1% higher, snapping a three-day losing streak, led by a 2.9% jump in top lender Emirates NBD (ENBD) DFM:EMIRATESNBD, as the bank is slated to report its quarterly earnings on Thursday.
Qatar stock index QSE:GNRI edged 0.4% higher, touching a fresh two-and-a-half-year high, with most sectors closing in the green.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 rose 1%, continuing its ascent to record highs, with Commercial International Bank EGX:COMI rising 1.5% following an increase in quarterly profit.
SAUDI ARABIA
TADAWUL:TASI jumped 1.3% to 10,984
ABU DHABI
ADX:FADGI rose 1.2% to 10,296
DUBAI
DFM:DFMGI climbed 1% to 6,086
QATAR
QSE:GNRI gained 0.4% to 11,186
EGYPT
EGX:EGX30 added 1% to 34,125
BAHRAIN
BAHRAIN:BHBX increased 0.3% to 1,950
OMAN
(.MSX30) eased 0.3% to 4,765
KUWAIT
(.BKP) inched up 0.2% to 9,296