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Energy and shipping stocks lift Gulf indices as US-China trade talks progress

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Major stock markets in the Gulf rose in early trade on Wednesday in line with Asian shares, on signs of progress in trade talks between the US and China.

Top officials of both the countries said on Tuesday they had agreed on a framework to get their trade truce back on track and remove China's export restrictions on rare earths.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent.

Saudi Arabia's benchmark index - which traded after a four session break - advanced 1.2 per cent, led by a 1.7 per cent rise in Al Rajhi Bank and a 1.6 per cent increase in oil giant Saudi Aramco.

The kingdom's crude oil supply to China is set to dip slightly in July, Reuters reported on Tuesday, citing trade sources, but still strong for a third straight month as the OPEC kingpin regains its market share supplying the world's top crude importer.

Dubai's main share index added 0.1 per cent, helped by a 1.1 per cent rise in blue-chip developer Emaar Properties.

In Abu Dhabi, the index inched 0.1 per cent higher, with ADNOC Gas climbing 1.2 per cent.

ADNOC Gas said on Tuesday it had taken a final investment decision on the first phase of its rich gas development (RGD) Project, awarding $5 billion in contracts to expand and improve efficiency at the project.

Elsewhere, chemicals maker Borouge gained 0.6 per cent after awarding a $531 million contract to ADNOC Logistics Services for streamlining maritime deliveries.

Separately, the rush of financial firms setting up in Abu Dhabi to tap the oil-rich emirate's wealth funds and Middle East markets will continue at pace, the official in charge of expanding its financial hub has predicted.

The Qatari index rose 0.4 per cent, led by a 0.4 per cent increase in the Gulf's biggest lender Qatar National Bank.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Shailesh Kuber)

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