Most major stock markets in the Gulf fell in early trade on Thursday tracking Asian shares lower, although the Saudi index was supported by positive earnings and rising oil prices.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1%, as investors fretted about growing deflationary pressures in China and a mixed bag of Japanese earnings, while a standoff over the U.S. debt ceiling overshadowed a meeting of G7 finance leaders.

Dubai’s main share index dropped 0.7%, hit by a 1.2% fall in blue-chip developer Emaar Properties and a 1.1% decline in Emirates NBD Bank.

Elsewhere, logistics firm Aramex retreated 2.2%, after posting a steep fall in quarterly profit.

In Abu Dhabi, the index lost 0.6%, weighed down by a 0.8% decrease in Emirates telecoms group Etisalat, also known as e&.

Vodafone Group said on Thursday the chief executive of its largest shareholder, e&, would join its board as the two companies agreed to deepen their strategic relationship.

ADNOC Gas reports higher Q1 profit as lower costs offset weak volumes

Separately, Abu Dhabi oil giant ADNOC intends to offer 15% of its shares in unit ADNOC Logistics & Services (ADNOC L&S) through an initial public offering (IPO) on the Abu Dhabi stock exchange, the company said on Wednesday.

The Qatari benchmark was down 0.3%, hit by a 0.7% fall in the Gulf’s biggest lender Qatar National Bank.

Saudi Arabia’s benchmark index rose 0.2%, with Riyad Bank advancing 2.4% and petrochemical maker Saudi Basic Industries Corp putting on 1.4%.

Among other gainers, Savola Group jumped more than 6%, its biggest intraday gain in three years, after reporting a sharp rise in first-quarter profit.

Oil prices - a key catalyst for the Gulf’s financial markets - bounced back after dropping by more than a dollar per barrel the previous day, supported by stronger fuel demand data from the United States, the world’s top oil consumer.