From Muhammad Idris

July 3 (Reuters) - The UAE stock markets closed higher on Friday, tracking gains in global stocks after a US jobs report reduced expectations of a near-term US interest rate hike.

The pan-European STOXX 600 index rose 0.2 percent, while the broader MSCI index of Asia-Pacific shares outside Japan gained 0.1 percent.

The US unemployment rate fell to 4.2 percent last month from 4.3 percent in May, as more workers left the labor force. The weak jobs data dampened expectations that the Federal Reserve would raise interest rates soon and increased bets that rates would remain unchanged until October.

US monetary policy moves have a significant impact on Gulf markets, including the UAE, given that most of the region's currencies are pegged to the dollar.

Dubai’s main index rebounded on Friday, rising 1.1 percent after gains in industrial and financial stocks helped maintain momentum.

Shares in Salik, the operator of the toll system, jumped 2.4 percent, while shares in Emaar Properties and Emirates NBD Bank each rose 1.5 percent.

On the other hand, Emirates Global Aluminium, owned by sovereign wealth funds in Abu Dhabi and Dubai, said on Thursday that it is making faster-than-expected progress in restoring production at its Al Taweelah complex, which was hit by Iranian strikes in March. The smelter's output will gradually increase as the reduction cells are restarted, but work could take a year to reach pre-attack levels.

Abu Dhabi's benchmark index closed 0.9 percent higher, marking its second consecutive session of gains. Shares of Aldar Properties rose 1.2 percent, while shares of Alpha Abu Dhabi Holding jumped 4.3 percent.

Shares in International Holding Company, the largest listed company in the UAE by market capitalization, rose 0.6 percent after it revealed plans to invest $11.5 billion in an integrated aluminum project in the eastern Indian state of Odisha through a joint venture with India's Adani Group, a government official said on Thursday.

As for weekly performance, data from the London Stock Exchange Group showed that the Dubai index rose 0.7 percent and the Abu Dhabi index rose 0.2 percent.