Sept 26 (Reuters) - Most major stock markets in the Gulf climbed in early trade on Thursday, in line with Asian shares, supported by news of aggressive economic stimulus from China, although geopolitical tensions in the region limited the upside.
China's central bank on Tuesday unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government's growth target.
Driving the optimism was an official readout from a meeting of China's politburo that said the country would deploy "necessary fiscal spending" to meet this year's economic growth target of roughly 5%.
Saudi Arabia's benchmark index gained 0.3%, with ACWA Power Company advancing 6.7% and Saudi Arabian Mining Company rising 1.4%.
Shares of oil giant Saudi Aramco eased 0.4%.
Oil prices - a catalyst for the Gulf's financial markets - slumped on news that Saudi Arabia, the world's biggest crude exporter, will give up on its price target in preparation for raising output.
The kingdom is preparing to abandon its unofficial price target of $100 a barrel for crude as it prepares to increase output, the Financial Times reported, citing people familiar with the matter.
Dubai's main share index gained 0.5%, with Parkin Company, which oversees public parking operations, rising 5.9%.
In Abu Dhabi, the benchmark index fell 0.4%.
Lebanese Prime Minister Najib Mikati has expressed hope that a ceasefire can be reached soon to end fighting between Israel and Iran-backed Hezbollah that has shaken his country and raised fears of a ground invasion.
But there was no let-up in violence. Israeli airstrikes overnight hit around 75 Hezbollah targets in the Bekaa Valley and southern Lebanon, including weapons storage facilities and ready-to-fire launchers, the Israeli military said on Thursday.
The Qatari benchmark was up 0.2%.
Reporting by Ateeq Shariff in Bengaluru; Editing by Sherry Jacob-Phillips
Source: Reuters