Dubai’s benchmark share index jumped on Wednesday to its highest level in more than a decade, while most other markets in the Gulf were muted as investors braced for fewer rate cuts by the US Federal Reserve in the coming year. Dubai’s benchmark stock index extended its gain to a second straight session, rising 0.6% to 5,093, its highest in 10 years and three months. Emirates NBD, Dubai’s largest lender, rose 0.8 and Gulf Navigation advanced 1.3%. Shuaa Capital surged 5.5% to its highest in over three months. The investment bank’s board approved on Friday a deal with a senior creditor to restructure 208 million dirhams ($56.64 million) in debt facilities. Saudi Arabia’s benchmark stock index was down 0.2%, with most sectors in the red. Saudi National Bank, the kingdom’s largest lender, fell 0.9% and media giant MBC Group slipped 1.7%. Kingdom Holding surged 8% in early trade after the conglomerate said it has acquired a stake worth 1.5 billion riyals ($400 million) in Elon Musk’s artificial intelligence start-up, xAI. The Abu Dhabi benchmark index was down 0.2%, pressured by a 0.5% drop in conglomerate International Holding falling 0.5% and 1.1% loss in Lulu Retail. The Qatari benchmark index slipped 0.4% with almost all stocks in negative territory. Qatar National Bank, the region’s largest lender, lost 0.5% and Qatar Gas Transport slipped 1%. US central bank policymakers have lowered their rate cut projections for 2025 to 50 basis points, from 100 basis points, and increased their inflation forecast. Traders are pricing in just about 35 basis points of easing for 2025. The Fed’s decisions have a significant impact on the Gulf region’s monetary policy, as most currencies there are pegged to the US dollar. Japan’s Nikkei: Japan’s Nikkei share average inched down on Wednesday as investors avoided active bets with Wall Street closed for the Christmas holiday. The Nikkei was down 0.12% at 38,990.56 by the midday break, after rising as much as 0.37% after the open. “The market struggled to find direction with foreign investors away for the holiday season,” said Fumio Matsumoto, chief strategist at Okasan Securities. “This time of the year, local individuals were the only ones active in trading but they do not want to place active bets when large stocks do not move actively with the absence of foreign investors.” Entertainment company Konami fell 1.74% to drag the Nikkei the most. Drugmaker Daiichi Sankyo lost 1.41% and phone company KDDI slipped 0.59%. The broader Topix fell 0.62% to 2,710.25, dragged lower by Toyota Motor’s 0.88% fall. Mitsubishi UFJ Financial Group lost 0.91%. Honda Motor slipped 0.77% after surging 12.2% in the previous session following the announcement of a share buyback on Monday. Local firms’ share buybacks have supported Japanese equities, but the buying is paused at the end of the year, which is also weighing on the Nikkei, said Okasan’s Matsumoto. Nissan Motor erased early losses to surge 8.6% to become the top percentage gainer on the Nikkei. Heavy machinery maker Kawasaki Heavy Industries jumped 4.78%. All but two of the 33 industry sub-indexes of the Tokyo Stock Exchange (TSE) fell. Steelmakers rose 0.36% and energy explorers inched up 0.6%. Of more than 1,600 stocks trading on the TSE’s prime market, 19% rose and 77% fell, with 3% trading flat.