Market Wrap MENA-Asia 5 August: Kospi and Nikkei Jump 3.7 Percent as Gulf Rises

By The Edge Research Team

Every Gulf market closed higher on Wednesday and Asian equities surged, led by gains of close to 4 percent in South Korea and Japan, as the global rally that began on Wall Street carried through the region, while oil steadied and gold extended its climb. South Korea’s Kospi jumped 3.76 percent and Japan’s Nikkei 225 rose 3.66 percent to 66,300.44, per CNBC, while Qatar led the Gulf with a 0.88 percent gain and Dubai closed above the 6,000 line.

Across Asia the advance was broad and technology-led. South Korea’s Kospi surged 3.76 percent to 6,598.26 and the Kosdaq added 2.42 percent, while Japan’s Nikkei 225 jumped 3.66 percent to 66,300.44 and the Topix 2.13 percent, per CNBC, as chip and artificial-intelligence shares extended their rebound after Tuesday’s Wall Street surge. Taiwan’s Taiex climbed 2.88 percent to 44,611.60, China’s Shenzhen Component gained 1.86 percent and the Shanghai Composite 1.47 percent, and Australia’s ASX 200 rose 0.90 percent. Hong Kong’s Hang Seng added 0.24 percent and India’s Nifty 50 was flat, while Singapore’s Straits Times, down 0.55 percent, was the region’s only decliner.

In commodities, oil steadied after two sessions of heavy selling. Brent crude rose 1.50 percent to 80.55 dollars a barrel and West Texas Intermediate 0.90 percent to 76.45 dollars, per CNBC, recovering part of the roughly 10 percent two-session drop that followed the OPEC+ decision to raise September output. Gold extended its surge, climbing 2.28 percent to 4,247.10 dollars an ounce as the dollar softened.

Gulf markets closed higher across the board. Qatar’s QE Index led, rising 0.88 percent to 10,181.82, per the Qatar Stock Exchange and our calculation, while Bahrain’s All Share added 0.46 percent to 1,965.23 and Dubai’s DFM General Index rose 0.36 percent to 6,007.85, closing above the 6,000 mark. Saudi Arabia’s MSCI Tadawul 30 gained 0.34 percent to 1,459.23 and the Tadawul All Share Index 0.27 percent to 10,887.55, Kuwait’s All Share rose 0.34 percent to 8,876.76 with the Premier Market up 0.26 percent, Oman’s MSX 30 added 0.19 percent to 7,349.10 and Abu Dhabi’s FADGI edged up 0.10 percent to 10,111.34, per the exchanges.

In Egypt, the EGX 30 rose 0.29 percent to 54,659.57, per the Egyptian Exchange, a fresh leg higher after Tuesday’s advance.

In currencies and crypto, the dollar softened. The euro firmed to 1.1545 and sterling to 1.3467, while the yen strengthened to 157.57 per dollar, per CNBC. The Egyptian pound extended its rally to 49.77 per dollar, firmly below the 50 line, while Bitcoin was little changed near 64,208 dollars.

For reference, Tuesday’s closes from our US-Europe wrap showed Wall Street surging, with the Nasdaq Composite up 2.59 percent, the S&P 500 up 1.79 percent and the Dow Jones Industrial Average up 1.71 percent, while Europe closed higher led by the Euro Stoxx 50, per CNBC.

Why it matters: Wednesday delivered the alignment the Gulf had been waiting for, our reading. Every regional benchmark closed higher on the same day that Asia surged and oil steadied above 80 dollars on Brent, a combination that supports both sides of the Gulf ledger: firmer risk appetite lifts regional assets while the stabilisation in crude eases the pressure on producer revenue after two heavy sessions. Qatar’s lead and Dubai’s close above 6,000 underline the region’s own momentum. For Egypt, the pound’s push below 50 per dollar alongside a rising stock market reflects the country’s strengthening external position, and cheaper oil than a week ago remains a tailwind for the import bill.

Outlook: The near-term markers are whether oil holds its footing above 80 dollars on Brent, whether the technology-led rally in Asia extends, and the run of US data into Friday’s July jobs report, our reading. Gold’s continued surge alongside rising equities suggests investors are still paying for protection even as risk appetite recovers, and the jobs report is the week’s clearest test of that balance. For the Gulf, a steadier oil price and firm global backdrop would support a continuation of the region’s broad advance.

Table MENA and Asia equities, 5 August close, ranked by change:

Table US and Europe, 4 August close, for reference, ranked by change:

Table Commodities, intraday 5 August, ranked by change:

Table Currencies and crypto, intraday 5 August, ranked by percent change:

Sources: CNBC; the regional exchanges.

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