Major stock markets in the Gulf rebounded on Wednesday after oil prices drifted higher on expectations of solid demand and low inventories.

Brent crude futures for August had risen 21 cents, or 0.2%, to $120.79 a barrel by 0413 GMT after closing on Tuesday at the highest since May 31.

Among global equities, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9%, narrowing from morning gains but recouping most of its losses in the previous session, while Japan's Nikkei 225 index was up 0.8%.

Dubai's main share index rose 1%, bolstered by a 2.3% jump in the blue-chip developer Emaar Properties and a 1.1% hike in the country's top lender Emirates NBD .

Saudi Arabia's benchmark index gained 0.3%, supported by banking and petrochemical stocks. The kingdom's largest lender Saudi National Bank rose 0.8% and Riyad Bank was up 1.1%.

Oil giant Saudi Aramco rose 0.6% after registering a 1.2% fall in the previous session.

In Abu Dhabi, equities gained 0.5% with the country's largest lender First Abu Dhabi Bank rising 1.1%.

Among other stocks, conglomerate International Holding Company rose 0.1% on its unit IHC Food Holding's decision to acquire a 25% stake in Invictus trading FZE.

The Qatar index added 0.2% with Qatar Islamic Bank rising 1.2%.

Qatar has picked Exxon Mobil Corp, TotalEnergies SE , Royal Dutch Shell and ConocoPhillips as partners in the expansion of the world's largest liquefied natural gas (LNG) project, people with knowledge of the matter said on Tuesday.

The North Field expansion will boost Qatar's LNG output by 64% by 2027, strengthening its position as the world's top LNG exporter and help to guarantee long term supply of gas to Europe.

(Reporting by Mohd Edrees in Bengaluru; Editing by Shailesh Kuber)