Middle Eastern stocks ended higher on Monday, a day after witnessing steep declines, as hopes of global interest rate cuts offset fears of damage to demand from the coronavirus outbreak.

Last week's wide losses led financial markets to price in policy responses from the U.S. Federal Reserve to the Bank of Japan, which indicated on Monday it would take necessary steps to stabilise financial markets. 

Dubai's main share index closed up 2.5%, with blue-chip developer Emaar Properties rising 3.3%.

Air Arabia, the country's only listed airline, jumped 6.2% to become the top gainer. The airliner registered heavy losses the previous few days, following suspension of all flights to and from Iran until further notice over coronavirus fears.

In Abu Dhabi, the index added 0.8%, supported by a 1.7% gain in the UAE's largest lender First Abu Dhabi Bank.

The central bank of the United Arab Emirates on Saturday advised banks to reschedule loans and reduce fees and commissions as part of measures to mitigate the economic effects of the coronavirus outbreak. 

Saudi Arabia's benchmark index shed early gains to close 0.1% up, off its intra-day high of 3%. Jabal Omar Development rose 3%, while oil giant Saudi Aramco was up 0.5%.

Kuwait's index soared 6.3%, a day after posting its biggest ever fall.

Egypt's index increased 0.6%, led by a 6.6% surge in Egypt Kuwait Holding.

On Sunday, Egypt introduced exceptional measures to make it easier for listed companies to buy treasury stocks, a move aimed at supporting the stock market following a sharp fall in world markets in the past few days. 

The Qatari index, which traded after a day's break, dropped 2.9%. The Middle East's second-biggest petrochemicals company by market value Industries Qatar slumped 8.2%, its biggest intraday fall since January 2015.

Qatar, which temporarily restricted entry to visitors from Egypt, discovered two more cases of coronavirus on Sunday, bringing the total to three.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Ramakrishnan M.) ((AteeqUr.Shariff@thomsonreuters.com; +918067497129;))