DUBAI: Most major Gulf equities closed higher on Thursday, tracking global peers and oil prices higher on optimism over China’s demand outlook and hopes for smaller rate rises in the United States.

Oil, which fuels region’s growth, rose more than 1% on Thursday with Brent crude was up $1.18, or 1.4%, to $83.85 a barrel by 1250 GMT.

Fadi Reyad, Chief Market Analyst at CAPEX.com MENA, Said GCC stock markets were impacted by both local and global economic factors, while traders were focusing on Thursday’s US inflation report and hoping for a recovery in the global economy’s demand outlook amid improved activities in China.

Saudi Arabia’s benchmark index jumped 1.2%, with Al Rajhi Bank increasing 2.9 percent. Saudi National Bank (SNB) advanced 2.7% after its board proposed to raise capital by 15.22 billion riyals ($4.05 billion) through issuing 1 bonus share for every 3 shares. The bank has also proposed a 0.6 riyals a share cash dividend for the second half.