Asian Gulf Markets Mixed Amid US-China Trade Optimism Rate Cut Expectations

Asian and Gulf stock markets showed mixed trading amid cautious investor sentiment ahead of upcoming monetary policy decisions from the European Central Bank, US Federal Reserve, and Bank of Japan. Optimism was fueled by potential US-China trade progress, with negotiators drafting a framework for a trade deal to be approved by Presidents Trump and Xi Jinping, which helped stabilize risk appetite despite subdued corporate earnings and falling oil prices. Saudi Arabia's market edged higher, supported by gains in banking stocks like Al Rajhi Bank and Banque Saudi Fransi, while other regional markets such as Dubai and Qatar showed declines due to weak earnings reports. The expected US Federal Reserve rate cut later this week—widely anticipated at 25 basis points—is influencing markets, as Gulf currencies pegged to the US dollar make the region sensitive to US monetary policy shifts. However, mixed corporate earnings results and cautious investor behavior suggest markets remain tentative despite trade optimism. Overall, the interplay of easing trade tensions, monetary policy expectations, and uneven earnings performance continues to shape market dynamics across Asia and the Gulf.