Confidence in China lifts UAE stock markets

UAE stocks rose alongside emerging markets after China said it would be more flexible in its efforts to stimulate the economy.

Arabtec led gains in Dubai while Abu Dhabi Commercial Bank pushed the index up in the capital.

The Dubai Financial Market General Index increased 1.4 per cent to 3,147.08 while the Abu Dhabi Securities Market General Index rose 0.4 per cent to 4,209.15. Most other regional bourses also got a lift as Brent rose 0.3 per cent to US$36.47 a barrel following a drop to an 11-year low on Monday.

At the same time, the MSCI Emerging Markets index rose 0.4 per cent after signals from China’s leadership that it will take more steps to support economic growth from a 25-year low, including by widening the fiscal deficit and stimulating the housing market.

The 837-member developing nation stock gauge has fallen 17 per cent this year, and is set for its worst annual performance since 2011.

“Oil is up and the headlines from the economic meetings in China, which indicate more fiscal stimulus and ‘flexible’ monetary policy, are supporting emerging-market stocks,” said Michael Wang, a strategist at hedge fund Amiya Capital in London.

* with Bloomberg