Market Wrap MENA-Asia 4 August: Gulf Gains as Kosdaq Rebounds 5.9 Percent

By The Edge Research Team

Gulf equities mostly advanced on Tuesday, led by the United Arab Emirates, while Asian markets rebounded sharply in South Korea and mainland China after Monday’s technology selloff, even as oil slipped again. Dubai’s DFM General Index rose 1.83 percent and Abu Dhabi’s FADGI added 1.62 percent, while South Korea’s Kosdaq jumped 5.88 percent and the Kospi 1.62 percent, per CNBC and the regional exchanges. Brent crude fell almost 3 percent.

Across Asia the session was a strong recovery in the technology-heavy markets. South Korea led, with the Kosdaq surging 5.88 percent and the Kospi rising 1.62 percent as chip and artificial-intelligence shares rebounded from Monday’s slide, while China’s Shenzhen Component gained 3.25 percent and the Shanghai Composite added 0.33 percent, per CNBC. Australia’s ASX 200 rose 1.40 percent and Japan was little changed, with the Nikkei 225 up 0.32 percent and the Topix 0.04 percent. The exceptions were Hong Kong, where the Hang Seng eased 0.60 percent, India’s Nifty 50, down 0.64 percent, and Taiwan’s Taiex, off 0.06 percent, while Singapore’s Straits Times was flat.

In commodities, oil gave back ground after an early bounce. Brent crude fell 2.92 percent to 81.32 dollars a barrel and West Texas Intermediate 3.63 percent to 77.42 dollars, per CNBC, extending the weakness that followed the OPEC+ decision to raise September output. Gold firmed 0.99 percent to 4,130.80 dollars an ounce as Treasury yields stayed soft.

Gulf markets were mostly higher, led by the United Arab Emirates. Dubai’s DFM General Index rose 1.83 percent to 5,986.07 and Abu Dhabi’s FADGI gained 1.62 percent to 10,101.64, per the exchanges, both extending recent strength. Saudi Arabia’s Tadawul All Share Index added 0.32 percent to 10,858.14 and the MSCI Tadawul 30 rose 0.31 percent to 1,454.33. The softer spots were Kuwait, where the Premier Market eased 0.18 percent to 9,295.38 and the All Share slipped 0.75 percent to 8,847.09, Oman’s MSX 30, down 0.19 percent to 7,334.80, and Bahrain’s All Share, effectively flat at 1,956.24.

In Egypt, the EGX 30 rose 0.75 percent to 54,501.70, per the Egyptian Exchange, holding near its recent highs, while Qatar’s QE Index eased 0.40 percent to 10,092.58, per the Qatar Stock Exchange.

In currencies and crypto, the dollar was broadly steady. The euro traded at 1.1511 and sterling at 1.3440, while the yen eased to 157.51 per dollar, per CNBC. The Egyptian pound traded around 50.20 per dollar, a touch softer than Monday’s level below 50.10, while Bitcoin was little changed near 63,867 dollars.

For reference, Monday’s closes from our US-Europe wrap showed Wall Street rallying, with the Nasdaq Composite up 2.13 percent, the S&P 500 up 1.48 percent and the Dow Jones Industrial Average up 1.32 percent, while Europe closed mostly higher, per CNBC.

Why it matters: Tuesday’s session showed Gulf equities holding their own footing, our reading. The United Arab Emirates led the region higher and Saudi Arabia firmed even as oil slipped, underscoring that regional markets are trading their own domestic and liquidity stories rather than tracking the barrel tick for tick. The rebound in South Korea and China points to steadier global risk appetite after Monday’s technology selloff, a supportive backdrop for the Gulf, while softer oil is a mixed signal, trimming producer revenue but easing the import bill for Egypt and Jordan. The Egyptian pound’s broad stability around the 50 line continues to reflect the country’s improved external position.

Outlook: The near-term markers are whether oil stabilises after its post-OPEC+ slide, the durability of the Asian technology rebound, and the path of US data into Friday’s July jobs report, our reading. For the Gulf, the combination of firmer global risk appetite and steady regional flows has kept markets resilient, and continued strength in the UAE and Saudi Arabia would confirm the domestic momentum as the region trades the global backdrop through the week.

Table MENA and Asia equities, 4 August close, ranked by change:

Table US and Europe, 3 August close, for reference, ranked by change:

Table Commodities, intraday 4 August, ranked by change:

Table Currencies and crypto, intraday 4 August, ranked by percent change:

Sources: CNBC; the regional exchanges.

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