Sept 12 (Reuters) - Major stock markets in the Gulf rose in early trade on Thursday after U.S. inflation data paved the way for a Federal Reserve rate cut next week, while traders awaited more economic data from the United States.
The U.S. consumer price index rose 0.2% in August, but underlying inflation showed some stickiness, which could result in the Fed delivering a smaller 25-basis-point cut at its upcoming meeting.
Fed policymakers will likely start long-awaited rate cuts next week as they seek to reduce the chance of a recession even as stubborn underlying price pressures put them off more aggressive action. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council, including Saudi Arabia, is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), gained 0.7%, on course to snap sessions of losses, with Al Taiseer Group (4143.SE), advancing 1.1%.
The pace of growth in Saudi Arabia's non-oil sector recovered slightly in August from the previous month's more than two-year low, a survey showed on Tuesday, supported by a pickup in new orders and jobs.
Among other gainers, oil giant Saudi Aramco (2222.SE), was up 0.7%.
Oil - a catalyst for the Gulf's financial markets - rose more than 1%, spurred by concerns of Hurricane Francine impacting output in the U.S., the world's biggest crude producer, though worries of lower demand capped gains.
Dubai's main share index (.DFMGI), added 0.4%, with blue-chip developer Emaar Properties (EMAR.DU), rising 0.8%.
In Abu Dhabi, the index (.FTFADGI), was flat.
The Qatari benchmark (.QSI), advanced 1.8%, buoyed by a 5.5% jump in the Gulf's biggest lender Qatar National Bank (QNBK.QA), a day after the bank approved a share buy-back of up to 2.9 billion riyals ($795.61 million).
($1 = 3.6450 Qatar riyals)
Reporting by Ateeq Shariff in Bengaluru Editing by Christina Fincher
