Markets focused on comments from a former US policymaker who said a 50 basis point rate cut was still an option this week.
U.S. interest rate futures now reflect a 47 percent chance of a half-point cut, up from 28 percent on Tuesday, after media reports suggested the margin would be narrow between a quarter-point and a half-point cut.
Stock movements
The index rose Saudi market By 0.5 percent, with Al Rajhi Bank shares rising 1.1 percent and Al Taisir Group shares rising 0.2 percent.
The Qatari index also advanced 0.6 percent, led by a 2 percent gain in the share of Sharia-compliant Masraf Al Rayan.
Outside the Gulf, the Jordanian Stock Exchange declined due to limited selling in leading and small-cap stocks amid improved liquidity.
The general index of shares closed down 0.15 percent to 2,406.25 points, while the trading value reached 5.1 million dinars ($7.1 million), compared to 4.2 million in the previous session.
