Market Wrap MENA-Asia 9 July: Asian Equities Rally and Egypt Firms as Gulf Bourses Drift Lower

Asian equities powered higher on Thursday, led by mainland China and Japan, while Gulf markets ended a quiet session mostly in the red, leaving the two blocs pointing in opposite directions.

In Asia, the gains were broad. China led the advance, with the Shenzhen Component up 3.07 percent to 15,398.73 and the Shanghai Composite up 1.65 percent to 4,036.59. Japan’s Nikkei 225 jumped 1.38 percent to 67,743.85, while the broader Topix added 0.35 percent to 4,020.37. South Korea’s Kospi rose 0.62 percent to 7,291.91 and India’s Nifty 50 firmed 0.34 percent to 23,962.80. The two decliners were Australia’s ASX 200, down 0.26 percent to 8,762.50, and Hong Kong’s Hang Seng, off 0.70 percent to 24,030.18.

Gulf bourses were softer and range-bound. Qatar’s QE Index was the weakest, down 0.84 percent to 10,090.57, with Saudi Arabia’s TASI down 0.42 percent to 10,808.43 and Bahrain’s All Share off 0.22 percent to 2,009.72. Dubai’s DFM General Index eased 0.18 percent to 5,990.88, and Abu Dhabi’s FADGI was nearly flat but slightly lower, down 0.03 percent to 9,881.79. In Kuwait the Premier Market Index was virtually flat, down 0.01 percent to 9,090.48, while the All Share Index edged up 0.01 percent to 8,663.33. Oman’s MSX 30 was the only clear gainer, up 0.09 percent to 7,644.45. Egypt’s EGX 30 closed 0.54 percent higher at 52,311.51.

The split was clear. The Gulf bloc averaged about a 0.20 percent decline across its eight indices, while the Asian bloc averaged a gain of roughly 0.81 percent across its eight, a spread of about 1.0 percentage point in Asia’s favour, our calculation. The full range ran from the Shenzhen Component’s 3.07 percent advance to Qatar’s 0.84 percent fall.

In currencies, the dollar was mixed. The euro firmed 0.17 percent to 1.1433 and sterling edged up 0.07 percent to 1.3395, while the dollar eased 0.10 percent against the yen to 162.41. The Egyptian pound was little changed at 49.60 to the dollar, and the Kuwaiti dinar held at 0.3077 per dollar, equivalent to about 3.25 dollars to the dinar, our calculation. Bitcoin rose 0.95 percent to about 62,741 dollars.

For reference, the most recent completed US session was Wednesday 8 July, when the Dow fell 1.09 percent, the S&P 500 slipped 0.28 percent and the Nasdaq Composite edged up 0.20 percent. European markets were still trading as this wrap was prepared, with the main continental indices higher intraday on 9 July while London’s FTSE 100 lagged.

Why it matters: A rotation toward Asian equities, driven by mainland China’s momentum and a strong Japanese session, contrasted with a cautious tone across the Gulf, where index moves were small and mostly negative ahead of the regional weekend. For MENA investors, the muted Gulf session and firmer Asian risk appetite underline how much regional direction is being shaped by Chinese policy signals, global rate expectations and oil-price volatility rather than domestic catalysts alone. Egypt’s firmer close and a broadly stable pound also point to steadier local sentiment, although the move was moderate rather than a decisive breakout.

Outlook: With the Gulf trading week closing, attention turns to Wall Street’s Thursday session and the read-through from US rate expectations, followed by next week’s Chinese activity data and the regional earnings calendar. A sustained Asian rally would support Gulf sentiment at the next open, while any reversal in Chinese equities or renewed oil-price volatility could quickly reset the tone.

Summary Table 1 – MENA and Asia Equities (9 July close)

Summary Table 2 – US and Europe Equities (reference; US 8 July close, Europe intraday 9 July)

Summary Table 3 – Rates, FX and Crypto (intraday 9 July)

Sources: Saudi Exchange; Boursa Kuwait; Qatar Stock Exchange; Abu Dhabi Securities Exchange; Dubai Financial Market; Bahrain Bourse; Muscat Stock Exchange; Egyptian Exchange; CNBC.

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