Financials are leading the way lower on the main Gulf bourses

Major Gulf equities fell in early trade on Tuesday, mirroring a fall in its Asian peers amid inflation fears, ahead of U.S.

The Reserve Bank of Australia raised interest rates by the most in 22 years and flagged more tightening to come as it battles to restrain surging inflation, stunning markets and sending the Aussie up, briefly

The main stock index in Saudi Arabia (.TASI) retreated 0.5%, weighed down by banking stocks with Al Rajhi Bank (1120.SE) losing 1.1% and the Riyad Bank (1010.SE) dropping 1.5%.

Separately, Saudi Arabia's gross domestic product grew 9.9% in the first quarter, more than a flash estimate last month of 9.6%, an official data showed on Tuesday.

The Qatari index (.QSI) declined 0.6%, as the Gulf's biggest lender Qatar National Bank (QNBK.QA) decreased 1.4% and Commercial Bank (COMB.QA) slid 2.3%.

Gulf International Services (GISS.QA) soared 8% after the company announced an interim agreement with Manaya Holding Group for potential merger of its unit Amwaj with Shaqab.

In Abu Dhabi, the index (.FTFADGI) edged down 0.1%, on track to extend its fifth straight session of losses.

Conglomerate International Holding Company (IHC.AD) eased 0.3% and petrochemical maker Borouge (BOROUGE.AD) dropped 0.9%.

Dubai's main share index (.DFMGI) also fell 0.6%, with Emirates Integrated Telecommunications (DU.DU) slipping 1.3% and Sharia lender Dubai Islamic Bank (DISB.DU) losing 0.8%.