MIDEAST STOCKS-Most Gulf stock markets extend gains after US-China trade agreement

May 12 (Reuters) - Gulf stock markets continued their upward trend early on Monday, buoyed by rising oil prices and developments in U.S.-China trade negotiations, which bolstered market sentiment as U.S. President Donald Trump prepares to visit the region.

The United States and China said on Monday they have agreed a deal to slash reciprocal tariffs as they seek to end a trade war that has disrupted the global economy and put financial markets on edge.

Geopolitical tensions also appeared to ease as a fragile ceasefire held between India and Pakistan. Meanwhile, Ukrainian President Volodymyr Zelenskiy announced his readiness to meet Russian President Vladimir Putin in Turkey on Thursday for talks.

Oil prices, the region's main source of income and a key driver for markets, rose on expectations that a trade deal would reduce the risk of a significant downturn in the global economy.O/R

Brent crude LCOc1 futures jumped 2.63%, to $65.59 a barrel by 0858 GMT.

Saudi Arabia's benchmark stock index .TASI rose 1.4%, with financial sector stocks leading a broader rise across most other sectors. Al Rajhi Bank 1120.SE, the kingdom's second-largest lender by assets, climbed more than 1%.

State oil giant Saudi Aramco 2222.SE, which reported a 4.6% drop in first-quarter profit on Sunday, rose 2.4%.

Sahara International Petrochemical (Sipchem) 2310.SE jumped 2.9%; it reported a more than 7% increase in first-quarter net profit, while National Industrialization (Tasnee) 2060.SE rose 2.3% after posting a profit of 895.8 million riyals ($238.84 million), reversing a loss from the prior-year period.

Dubai's main share index .DFMGI gained 0.7%, driven by strong performances in financial and property stocks. Emirates NBD Bank ENBD.DU rose nearly 1.4%, while blue-chip developer Emaar Properties EMAR.DU added 1.5%.

Abu Dhabi's benchmark index .FTFADGI gained 0.5%, supported by a 1.6% gain in developer Aldar Properties ALDAR.AD.

Qatar's benchmark index .QSI marked a third consecutive session of gains, up 0.6%, with Qatar National Bank QNBK.QA, the Gulf's largest lender by assets, adding 0.8%.

($1 = 3.7507 riyals)