MIDEAST STOCKS-Most Gulf markets gain with Iran ceasefire in focus ahead of Trump's China trip

May 13 (Reuters) - Most Gulf stock markets edged higher in early trade on Wednesday, as investors watched the fragile Middle East ceasefire and the upcoming high-stakes meeting in China between U.S. President Donald Trump and Chinese President Xi Jinping.

U.S. Treasury Secretary Scott Bessent has said that the two presidents will discuss the Iran war, and urged China to "join us in this international operation" to open the Strait of Hormuz to international shipping.

But while Beijing worked behind the scenes to convince Iran to hold peace talks with the U.S. in Pakistan last month, analysts say it would not act solely at Washington’s behest.

Saudi Arabia's benchmark index .TASI gained 0.2%, with Al Rajhi Bank 1120.SE rising 0.8% and the country's biggest lender, Saudi National Bank 1180.SE, increasing 0.5%.

In Abu Dhabi, the index .FTFADGI added 0.3%, with ADNOC Drilling ADNOCDRILL.AD advancing 1.6% after its CFO told Reuters on Tuesday that the company is prepared to help expand the UAE's oil production capacity beyond its current target of 5 million barrels per day by 2027, if approved.

The Qatari index .QSI edged 0.1% higher.

Meanwhile, Brent crude futures LCOc1 dropped $1.47, or 1.4%, to $106.30 a barrel at 0630 GMT.

Dubai's main share index .DFMGI declined 0.7%, with blue-chip developer Emaar Properties EMAR.DU losing 1%.