Jan 24 Reuters Gulf stock markets closed higher on Tuesday on expectations of economic recovery in the world39;s second largest economy, China, and smaller interest rate hikes from the U.S. Federal Reserve.

The Fed will end its tightening cycle after a 25basispoint hike at each of its next two policy meetings and then likely hold interest rates steady for at least the rest of the year, according to most economists in a Reuters poll.

Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.

The International Energy Agency IEA said on Wednesday that China39;s lifting of COVID19 restrictions should bring global demand to a record high this year. OPEC also forecast a rebound in Chinese demand.

The benchmark index in Saudi Arabia added 0.3, lifted by gains in materials, financial and energy sector stocks, with oil giant Saudi Aramco continuing its gains since Monday, rising 0.6. The world39;s largest Islamic bank by market capitalization, Al Rajhi Bank, rose 0.8.

In Abu Dhabi, the index rose 0.6, ending its four session losing streak, with the country39;s biggest lender First Abu Dhabi Bank surging 2.7 and real estate developer Aldar Properties rising 1.3.

The developer said on Monday that the first phase Of 39;The Sustainable City Yas Island39; was sold out within 24 hours, generating over 1 billion dirhams in sales.

Dubai39;s benchmark index bounced back from two sessions of…