Saudi outperforms Gulf peers in early trade as Trump pauses tariffs

By Ateeq Shariff

April 10 (Reuters) - Saudi Arabia's stock market led most of its Gulf peers higher early on Thursday, tracking global shares, after U.S. President Donald Trump's unexpected decision to temporarily suspend most of his recently imposed tariffs.

Trump on Wednesday announced a 90-day pause on many of his new duties, however, he raised the tariff rate for China to 125% effective immediately, from the previously announced 104% that took effect earlier on Wednesday.

Saudi Arabia's benchmark index .TASI jumped 4%, on track for its biggest intraday rise since March 2020, buoyed by a 3.8% rise in Al Rajhi Bank 1120.SE and a 3.9% increase in the country's biggest lender Saudi National Bank 1180.SE.

Saudi Arabia has been hit by the minimum 10% tariff rate, which at present will remain in place.

Among other gainers, Saudi Aramco 2222.SE leapt 2.6%. The oil giant has discovered 14 oil and natural gas fields and reservoirs in the kingdom's Eastern Region and the Empty Quarter, Reuters reported on Wednesday, citing state news agency SPA, containing small volumes.

The Saudi index - which saw its biggest intraday fall on Sunday in nearly 5 years - is poised for its worst weekly decline since May, despite the sharp gain.

Dubai's main share index .DFMGI was up 2.6%, with blue-chip developer Emaar Properties EMAR.DU climbing 4.7% and the top lender Emirates NBD ENBD.DU up 3.7%

In Abu Dhabi, the index .FTFADGI rose 1.3%, led by a 4.6% gain in ADNOC Gas ADNOCGAS.AD.

Oil prices on the other hand, the catalyst for the Gulf's financial markets, retreated as Trump ramped up a trade war with China.

The Qatari benchmark .QSI gained 2.1%, with the Gulf's biggest lender Qatar National Bank QNBK.QA putting on 2.6%.

In the previous session, the lender reported a net profit of 4.26 billion riyals ($1.17 billion) for the first quarter, exceeding analysts' expectations.

($1 = 3.6445 Qatar riyals)