Shares climb to 14-week high

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SHANGHAI shares rose to a 14-week high yesterday, on improved risk appetite after the US Fed, while raising rates, dampened expectations of more aggressive tightening ahead.

The Shanghai Composite Index rose 0.84 percent to 3,268.94 points.

The Federal Reserve raised its benchmark policy rate 25 basis points, which analysts said had been factored into markets.

The Fed stressed that it planned to move gradually and forecast two more rate hikes this year. That cooled investor speculation that the Fed could move more aggressively.

The Fed raised rates as expected but left the market with a more “gradual” view regarding future rate hikes, Pan Jingyi, market strategist of IG Asia, said in a report.

China’s central bank yesterday raised the interest rates of open market operation tools in what analysts said was a bid to ward off capital outflows and keep the yuan stable after the Fed’s move overnight.

Huaan Securities Co surged by the 10 percent daily cap to 12.83 yuan (US$1.86).