Major stock markets in the Gulf rose in early trade on Thursday after softer-than-expected U.S. inflation data encouraged bets of less aggressive rate hikes from the Federal Reserve.
U.S. consumer prices were unchanged in July compared with June, when they rose a monthly 1.3%. The July result was lower than expectations due to a sharp drop in the cost of petrol, causing markets to reposition on hopes that inflation was peaking.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) surged 1.4% to the highest in six weeks.
Saudi Arabia’s benchmark index (.TASI) gained 0.8%, with Al Rajhi Bank (1120.SE) advancing 2.2%, while Saudi Arabian Mining Co (1211.SE) jumped 5%.
The miner reported quarterly net profit of 4.03 billion riyals ($1.07 billion), up from 1.10 billion riyals a year ago.