Bluechips and banking stocks were picked up by investors in Oman. Bank Dhofar rose 5.4 percent and Galfar Engineering advanced 5 percent.

"In line with global market trend, the index climbed the most in this month after China's yuan decision, and the speculators are back in action and focusing on stocks which were earlier oversold," said Osama Ibrahim Al-Qinna, head of brokerage at Oman Arab Bank.

"The upbeat sentiment in the region - due to surge in oil prices - is pushing up the volumes to new levels. We need to see follow through to the upside in the next few days to see if this recovery is sustainable."

Real estate stocks boosted trading on both bourses in the United Arab Emirates, with Dubai's bellwether developer Emaar Properties rose 2.7 percent, extending its 8.6 percent surge in Sunday's session, to end at 3.39 dirhams after an intraday high of 3.42 dirhams. The Dubai index rose 1.1 percent to 1,564 points. The Abu Dhabi measure advanced 1 percent to 2,562 points.

"The trend remains bullish," said Shiv Prakash, equity analyst at MAC Capital Advisors.

"The stock closed above the 14 day simple moving average and the next resistance is seen near the neckline levels of 3.50 dirham. One can book the gains near the neckline resistance levels."

In Abu Dhabi, Aldar Properties rose 3.2 percent and Sorouh advanced 2.6 percent.

"Markets are expected to continue the bounce in the next trading session as well," Prakash said.

Majority government-owned Aabar Investments ended 1.9 percent higher. A statement issued after trading hours said the company would discuss a date on June 24 for an extraordinary general meeting to consider delisting.

A rally on Egypt's exchange might be slowing however, as gains on Monday were muted by late selling on several leading stocks although the index rose for a fourth straight session.

Heavyweight Orascom Telecom (OT) lost 0.2 percent, after opening strongly.

"I expect we will slow down a little bit starting today as we have to have some profit-making," said Karim Hosny of Pharos Securities.

Qatar's index added 1.1 percent to 7,123 points, and petrochemical stocks helped Saudi Arabia's benchmark to advance 0.6 percent, with smaller gains in Bahrain.

The Tadawul All-Share Index (TASI) closed at 6,450.68 points with only four sectors closing the day with losses. The losses ranged from 0.04 percent in the Agriculture & Food Industries to a loss of 0.68 percent in the Energy & Utilities sector. Sector gains ranged from 0.24 percent in the Telecom & IT, to a gain of 1.47 percent in the Industrial Investment sector. Overall market breadth was positive, with 95 advancers and 27 decliners, recording an AD ratio of 3.52, the Financial Transaction House (FTH) said in its daily market commentary.

Kuwait's index, which had bucked the rising regional trend for most of the session, ended just 0.1 percent up at 6,644 points.
 
— With input from agencies