March 16, 2017 / 7:29 AM / in a year

Shanghai share index closes at 14-week high after Fed decision

SHANGHAI, March 16 (Reuters) - Shanghai stocks climbed to a 14-week high on improved risk appetites after the U.S. Federal Reserve, while raising rates, dampened expectations of more aggressive tightening ahead.

The blue-chip CSI300 index rose 0.5 percent to 3,481.51 points, and the Shanghai Composite Index advanced 0.8 percent to 3,268.94 points, its highest since early Dec.

The Fed raised its benchmark policy rate 25 basis points, which had been factored into markets

Fed policymakers kept their projections for three rate increases this year, defying predictions that they would release a more aggressive set of rate-raising forecasts.

Also on Thursday, China’s central bank raised short-term interest rates in what economists said was a bid to stave off capital outflows and keep the yuan currency stable after the raised U.S. rates overnight.

The move did not appear to have an immediate impact on Chinese stock markets.

Most sectors gained ground, led by financial and energy plays, as oil extended gains from the previous session after data showed U.S. stockpiles eased from record highs.

Property stocks eased after major cities imposed new property curbs to deter speculators.

Shares in telecom equipment maker ZTE Corp surged 10 percent, posting its best day since mid-August 2015, after the settlement of a U.S. sanctions case. (Reporting by Luoyan Liu and John Ruwitch; Editing by Richard Borsuk)

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