* SSEC +0.7 pct, CSI300 +0.4 pct, HSI +1.3 pct
* Hong Kong finance, property shares jump on risk mood
* Energy shares in Hong Kong rebound sharply
SHANGHAI, March 16 China and Hong Kong stocks
tracked regional markets higher on improved risk appetite after
the U.S. Federal Reserve raised rates in a widely expected move,
although it dampened expectations of more aggressive tightening
The CSI300 index rose 0.4 percent, to 3,477.94
points by the lunch break on Thursday, while the Shanghai
Composite Index gained 0.7 percent, to 3,263.08 points.
The Hang Seng index added 1.3 percent, to 24,104.06
points, while the Hong Kong China Enterprises Index
gained 1.7 percent, to 10,442.55.
The Fed raised its benchmark policy rate by 25 basis points,
which had been largely factored into markets, traders said.
Meanwhile, Fed policymakers still projected a total of three
rate increases this year, defying predictions from some analysts
that it would release a more aggressive set of rate-raising
Hong Kong's central bank raised its benchmark interest rate
while China's central bank lifted short-term interest rates
after the U.S. rate hike.
Chi Lo, economist at BNP Paribas Investment Partners, said
that the Fed's 25 bp hike should have a limited impact on
Chinese interest rates or capital outflows, which have already
shown signs of abating.
"From a sectoral perspective, the revival of PPI inflation
bodes well for the earnings growth of upstream industrial and
big cap stocks, such as energy-related, metal, chemical and
heavy industrial companies," he wrote.
"But downstream companies do not enjoy the same benefit due
to the lack of pass-through of PPI inflation to CPI inflation."
Most sectors rose in China and Hong Kong.
Shares in sub-indexes of banking and property
companies in Hong Kong jumped more than 1 percent on the
benign economic outlook and the continued steady path of rate
rises signalled by the U.S. central bank.
Energy shares in Hong Kong jumped 2.7 percent.
(Samuel Shen and John Ruwitch)