Gulf bourses advance as investors weigh US midterms and Iran standoff

Nov 4 (Reuters) - Gulf bourses advanced in early trade on Wednesday as investors weighed the fallout from the US midterms and waited to see how Washington would respond in its war with Iran.

Democrats seized the Senate and the House, dealing a setback to President Donald Trump. Their wins in South Carolina, Texas and Ohio broke through long-held Republican territory.

Saudi Arabia's benchmark index .TASI gained 1.7%, lifted by a 6.7% jump in Saudi Arabian Mining Company 1211.SE and a 1.4% rise in Al Rajhi Bank 1120.SE.

The US carried out "defensive" strikes on Iran's Qeshm island targeting surface-to-air missiles used against US assets, a US official said on Tuesday. Another official said the strikes appeared limited and did not signal a return to major combat operations.

In Qatar, the index .QSI leapt 2.3%, with almost all its constituents in positive territory including Qatar Islamic Bank QISB.QA, which was up 3.3%.

Doha announced on Tuesday that Washington and Tehran remain dedicated to mediation and are examining proposals meant to close the distance between them.

Qatari officials also reported recent progress in discussions with each side, and efforts to shrink the differences between them are still underway.

Dubai's main share index .DFMGI rose 2.1%, with blue-chip developer Emaar Properties EMAR.DU increasing 3.6%.

The property giant is offering to buy all Emaar Development EMAARDEV.DU shares it doesn't already own, at AED 15 per share in cash, through its wholly owned unit, Emirates Property Holdings. Emaar Development shares rose 4%.

The Abu Dhabi index .FTFADGI was up 0.9%