Mideast Stocks: Saudi bourse gains amid volatile US trade policy; Qatar flat
Saudi Arabia's stock market ended higher on Sunday amid investor focus on radical changes to U.S. trade policy, although the Qatari index finished flat. Investor confidence improved after U.S. President Donald Trump temporarily halted steep tariffs last week, easing pressure on global economies. Markets were also monitoring negotiations between Japan and the United States that Trump lauded as productive.
Saudi Arabia's benchmark index gained 0.6%, helped by a 7.8% jump in Jabal Omar Development and a 1% increase in oil giant Saudi Aramco. Oil prices settled more than 3% higher on Thursday, supported by hopes for a trade deal between the United States and the European Union and new U.S. sanctions to curb Iranian oil exports, which continued to elevate supply concerns. In Qatar, the index closed flat.
** Egypt bourse was closed for a public holiday
SAUDI ARABIA added 0.6% to 11,627
QATAR closed flat at 10,135 BAHRAIN rose 0.1% to 1,903
OMAN was flat at 4,306
KUWAIT added 0.1% to 8,427
(Reporting by Ateeq Shariff in Bengaluru; Editing by Toby Chopra)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
an hour ago
- Gulf Today
Asian equities see largest monthly foreign inflow in 15 months
Asian equities attracted strong foreign inflows in May as concerns over an immediate economic hit from higher US tariffs eased, prompting a return by investors who had previously exited large and concentrated positions in the region. The inflows marked a sharp reversal after four consecutive months of net foreign selling. According to data from LSEG, foreign investors bought approximately $10.65 billion worth of equities across India, Taiwan, South Korea, Thailand, Indonesia, Vietnam, and the Philippines, registering their largest monthly net purchase since February 2024. US President Donald Trump's announcement of reciprocal tariffs in early April stoked concerns over the impact on Asian exports, exporter margins, and regional supply chains, but a subsequent 90-day pause for most countries later in the month helped ease investor fears and revive interest in regional assets. Goldman Sachs said it has revised its earnings growth forecast for MSCI Asia Pacific ex-Japan (MXAPJ) to 9 per cent for both 2025 and 2026, raising estimates by 2 and 1 percentage points, respectively, citing stronger macro growth in China and US-exposed markets. The upgrade was also supported by $600 billion in AI-related investments from Saudi Arabia to US firms, which are expected to benefit Taiwan and Korea, though the impact may be partially offset by a weaker dollar, the brokerage said. Taiwan equities witnessed $7.28 billion worth of foreign inflows, the largest monthly cross-border net purchase since November 2023. Foreigners also acquired a significant $2.34 billion worth of Indian stocks in their largest monthly net purchase since September 2024. South Korean, Indonesian and Philippine stocks also saw foreign inflows worth a net $885 million, $338 million and $290 million, respectively, while Thai stocks suffered $491 million of net selling. Despite heightened market volatility in the first half of the year driven by concerns over President Trump's trade policies, the MSCI Asia-Pacific Index has risen about 8.8 per cent year-to-date, outperforming both the MSCI World Index, which is up 5.4 per cent, and the S&P 500 Index, which has gained 0.98 per cent. Asian currencies were steady on Friday and poised for weekly gains after a phone call between US President Donald Trump and Chinese leader Xi Jinping signalled further trade talks, while most regional equities tracked Wall Street's overnight losses. In India, equities reversed course to rise 0.9 per cent after the Reserve Bank of India delivered a larger-than-expected cut to its key repo rate and lowered the cash reserve ratio to bolster economic growth. 'The RBI may have decided to move quickly to a more appropriate policy rate level. A shift towards neutral stance means more rate cuts may be unlikely in the near-term,' Jeff Ng, Head of Asia Macro Strategy at SMBC, said. The rupee inched up 0.1 per cent to 85.74 per dollar. Other regional currencies moved within a narrow band. The Thai baht and Singapore dollar were largely flat but were on track for weekly gains of 0.5 per cent and 0.4 per cent, respectively. The Malaysian ringgit was up nearly 0.6 per cent for the week. MSCI's index of emerging market currencies was flat after touching an all-time high on Thursday. The index is up 0.5 per cent for the week. The dollar index was little changed, after hitting a six-week low on Thursday, and was headed for a weekly loss of 0.5 per cent. Trump's erratic tariff moves and a worsening US fiscal outlook have triggered a flight from the dollar, prompting analysts to expect most emerging market currencies will retain or build on their gains over the next six months. In their closely watched hour-long phone call on Thursday, Xi pressed Trump to ease trade tensions that have rattled the global economy and warned against provocative moves on Taiwan, according to a summary released by the Chinese government. But Trump said on social media that the talks, focused primarily on trade, led to 'a very positive conclusion'. 'The talks look positive, and coupled with Federal Reserve rate cut expectations due to weak US data, might lead to further USD softening,' said Saktiandi Supaat, Head of FX research at Maybank. Markets are now bracing for the US jobs and non-farm payrolls report due later in the day, with concerns that a downside surprise could stoke stagflation fears and boost pressure on the Federal Reserve to quickly ease policy. Reuters
Al Etihad
2 hours ago
- Al Etihad
Trump says he has no plans to speak to Musk as feud persists
7 June 2025 17:15 WASHINGTON (Reuters)US President Donald Trump said on Friday that he has no plans to speak with Elon Musk, signaling the president and his former ally might not resolve their feud over a sweeping tax-cut bill any time reporters aboard Air Force One, Trump said he wasn't "thinking about" the Tesla CEO."I hope he does well with Tesla," Trump Trump said a review of Musk's extensive contracts with the federal government was in order. "We'll take look at everything," the president said. "It's a lot of money."Trump may get rid of the red Tesla Model S that he bought in March after showcasing Musk's electric cars on the White House lawn, a White House official said, speaking on condition of for his part, did not directly address Trump but kept up his criticism of the massive Republican tax and spending bill that contains much of Trump's domestic his social-media platform X, Musk amplified remarks made by others that Trump's "big beautiful bill" would hurt Republicans politically and add to the nation's $36.2 trillion debt. He replied "exactly" to a post by another X user that said Musk had criticized Congress and Trump had responded by criticizing Musk also declared it was time for a new political party in the United States "to represent the 80% in the middle!"People who have spoken to Musk said his anger has begun to recede and they think he will want to repair his relationship with Trump, according to one person who has spoken to Musk's White House statements came one day after the two men battled openly in an extraordinary display of hostilities that marked a stark end to a close stock rose on Friday, clawing back some losses from Thursday's session, when it dropped 14% and lost $150 billion in value, the largest single-day decline in the company's the world's richest man, bankrolled a large part of Trump's 2024 presidential campaign. Trump named Musk to head a controversial effort to downsize the federal workforce and slash feted Musk at the White House a week ago as he wrapped up his role as head of the Department of Government Efficiency. Musk cut only about half of 1% of total spending, far short of his brash plans to axe $2 trillion from the federal then, Musk has denounced Trump's tax-cut and spending bill as a "disgusting abomination." His opposition is complicating efforts to pass the bill in Congress where Republicans hold a slim bill narrowly passed the House of Representatives last month and is now before the Senate, where Republicans say they will make further analysts say the measure would add $2.4 trillion in debt over 10 Speaker Mike Johnson said he has been texting with Musk and hopes the dispute is resolved quickly. 'VERY DISAPPOINTED'Trump had initially stayed quiet while Musk campaigned to torpedo the bill, but broke his silence on Thursday, telling reporters he was "very disappointed" in Musk. Trump suggested he would terminate government contracts with Musk's businesses, which include rocket company SpaceX and its satellite unit Starlink. The billionaire then threatened to decommission SpaceX's Dragon spacecraft, the only US spacecraft capable of sending astronauts to the International Space Station. Musk later backed off that threat.
Gulf Today
4 hours ago
- Gulf Today
China's forex reserves in May up by a less-than-expected $3.6 billion
China's foreign exchange reserves rose by a less-than-expected $3.6 billion in May, official data showed on Saturday, as the dollar continued to weaken against other major currencies. The country's foreign exchange reserves, the world's largest, rose 0.11 per cent to $3.285 trillion last month, below the Reuters forecast of $3.292 trillion. They were $3.282 trillion in April. The increase in reserves was due to 'the combined effects of factors such as exchange rate conversion and asset price changes,' China's State Administration of Foreign Exchange said in a statement. The yuan weakened 1.05 per cent against the dollar in May, while the dollar slid 0.23 per cent against a basket of other major currencies. China's foreign exchange reserves rose by a less-than-expected $3 billion in May, official data showed on Saturday, as the dollar continued to weaken against other major currencies. The country's foreign exchange reserves, the world's largest, rose to $3.285 trillion last month, below the Reuters forecast of $3.292 trillion. They were $3.282 trillion in April. The yuan weakened 1.05 per cent against the dollar in May, while the dollar slid 0.23 per cent against a basket of other major currencies. Meanwhile China's central bank added gold to its reserves in May for the seventh straight month, official data from the People's Bank of China (PBOC) showed on Saturday. Spot prices for gold, often seen as a refuge from economic and geopolitical uncertainty, were steady in May after hitting an all-time high of $3,500 per ounce in April. China's gold reserves rose to 73.83 million fine troy ounces at the end of May from 73.77 million ounces at the end of April. Its gold reserves were valued at $241.99 billion at the end of last month, down from $243.59 billion at the end of April, the PBOC said. With bullion up 27% so far this year due to tariff war fears on top of 27% growth in 2024, gold market specialists say the PBOC's readiness to continue building up gold holdings despite high prices reflects Beijing's desire to diversify its foreign currency reserves. Officials at the PBOC have not publicly said what was driving the gold purchases. In 2024, the PBOC took a six-month pause after an 18-month-long gold purchasing spree, before resuming buying gold in November, when Donald Trump won the US presidential election. The world's central banks are on track to buy 1,000 metric tonnes of gold in 2025, which would be their fourth year of massive purchases as they diversify reserves from dollar-denominated assets into bullion, consultancy Metals Focus said this week. Meanwhile China is willing to accelerate the examination and approval of rare earth exports to European Union firms and will also deliver a verdict on its trade investigation of EU brandy imports by July 5, its commerce ministry said on Saturday. Price commitment consultations between China and the EU on Chinese-made electric vehicles exported to the EU have also entered a final stage but efforts from both sides are still needed, according to a statement on the Chinese commerce ministry's website. The issues were discussed between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic in Paris on Tuesday, according to the statement. The comments mark progress on matters that have vexed China's relationship with the European Union over the past year. Most recently, China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. The ministry said China attached great importance to the EU's concerns and 'was willing to establish a green channel for qualified applications to speed up the approval process.' Commerce Minister Wang during the meeting 'expressed the hope that the EU will meet us halfway and take effective measures to facilitate, safeguard and promote compliant trade in high-tech products to China,' according to the statement. Chinese anti-dumping measures that applied duties of up to 39 per cent on imports of European brandy - with French cognac bearing the brunt - have also strained relations between Paris and Beijing. The brandy duties were enforced days after the European Union took action against Chinese-made electric vehicle imports to shield its local industry, prompting France's President Emmanuel Macron to accuse Beijing of 'pure retaliation'. The Chinese duties have dented sales of brands including LVMH's Hennessy, Pernod Ricard's Martell and Remy Cointreau. Beijing was initially meant to make a final decision on the brandy duties by January, but extended the deadline to April and then again to July 5. Reuters
