Saudi Arabia's stock market led most of its Gulf peers higher early on Thursday, tracking global shares, after U.S. President Donald Trump's unexpected decision to temporarily suspend most of his recently imposed tariffs.

Trump on Wednesday announced a 90-day pause on many of his new duties, however, he raised the tariff rate for China to 125% effective immediately, from the previously announced 104% that took effect earlier on Wednesday.

Saudi Arabia's benchmark index jumped 4%, on track for its biggest intraday rise since March 2020, buoyed by a 3.8% rise in Al Rajhi Bank and a 3.9% increase in the country's biggest lender Saudi National Bank.

Saudi Arabia has been hit by the minimum 10% tariff rate, which at present will remain in place.

Among other gainers, Saudi Aramco leapt 2.6%. The oil giant has discovered 14 oil and natural gas fields and reservoirs in the kingdom's Eastern Region and the Empty Quarter, Reuters reported on Wednesday, citing state news agency SPA, containing small volumes.

The Saudi index - which saw its biggest intraday fall on Sunday in nearly 5 years - is poised for its worst weekly decline since May, despite the sharp gain.

Dubai's main share index was up 2.6%, with blue-chip developer Emaar Properties climbing 4.7% and the top lender Emirates NBD up 3.7%

In Abu Dhabi, the index rose 1.3%, led by a 4.6% gain in ADNOC Gas.

Oil prices on the other hand, the catalyst for the Gulf's financial markets, retreated as Trump ramped up a trade war with China.

The Qatari benchmark gained 2.1%, with the Gulf's biggest lender Qatar National Bank putting on 2.6%.

In the previous session, the lender reported a net profit of 4.26 billion riyals ($1.17 billion) for the first quarter, exceeding analysts' expectations.

($1 = 3.6445 Qatar riyals)

(Reporting by Ateeq Shariff in Bengaluru; Editing by Sharon Singleton, Elaine Hardcastle)


Reuters