UAE Markets Surge After Russia Offer On Syria

Dubai’s bourse surges in early trade after the United States said Russia’s offer to work with Syria to put its chemical weapons under international control could be a potential ‘breakthrough’ in the crisis.

Iranian foreign ministry on Tuesday said it supports Russia’s offer.

Dubai’s index jumps five per cent to 2,441 points and Abu Dhabi’s benchmark rallies five per cent to 3,652 points.

Buying demand has increased following two weeks of heavy selling on hopes a potential military strike on Syria may be averted.

Brent crude oil futures dropped to a one-week low below $113 a barrel on Tuesday as supply fears abated.

Most Gulf Arab markets fell on Monday in volatile trade, with Dubai’s index slumping to a two-month low and Abu Dhabi dropping to its lowest close since late May.

Elsewhere, Asian stocks rose to three-month highs on Tuesday as investors wagered upcoming Chinese data will add to signs the global economy is stabilising.