(Updates prices, adds comment, details)
Oct 8 (Reuters) - Moscow's MICEX stock index reached a seven-month high on Tuesday with investors pricing in a resolution of the U.S. fiscal standoff. The rouble fell back after the central bank said it was adjusting its intervention policy.
By market close the rouble-denominated MICEX had risen 2.7 percent to 1503 points, its highest level since Mar. 15. The dollar-denominated RTS was up 1.7 percent at 1467 points, just below a six-month high reached last month.
'Some market players may form positions in oversold assets with strong fundamentals, expecting a resolution in the U.S. fiscal crisis,' said Iskander Abdullaev, at Sberbank Investment Research. 'This is a reflection of future risk-on sentiment'.
There are only nine days left for Congress to raise the U.S. debt ceiling, while President Barack Obama said he would accept a short-term increase to avoid a default.
Shares in Russia's gas producer Gazprom outperformed, up 3.4 percent, while No. 2 oil producer Lukoil gained 2.4 percent.
Russian stocks are seen as 'high-beta' assets, which tend to outperform a rising market or underperform a falling one. The emerging market stock index rose 0.5 percent.
Russian assets have room for growth, trading at an almost 50 percent discount to emerging market peers despite a strong dividend yield of 3.8 percent, 33 percent above broader emerging markets, Credit Suisse calculates.
The Russian currency fell back slightly on Tuesday, after the central bank announced that it was revising the parameters of its intervention policy in the currency market.
The central bank said in a statement that it was widening the range in which it makes no interventions, as part of its shift in monetary policy priorities from targeting the exchange range to controlling interest rates.
The no-intervention range will now extent by 3.1 roubles, up from one rouble previously. The range of the rouble's trading corridor remains unchanged at 32.30 to 39.30 against a dollar-rouble basket that the central bank uses to monitor the rouble's nominal exchange rate.
The rouble was down 0.1 percent against the dollar at 32.28 and 0.2 percent down versus the euro at 43.88. , leaving it down at 37.50 against the dollar-euro basket.
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(Reporting by Maya Dyakina, editing by Jason Bush, Ron Askew) Keywords: RUSSIA MARKETS/
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