(Updates prices, adds comments)
Oct 10 (Reuters) - Russian shares edged up on Thursday on signs of a resolution of the U.S. budget impasse, with investors focusing on oil and gas companies against the background of continued high crude prices.
Prices for oil, Russia's chief export, also supported the rouble, rising towards $110 per barrel after news of the Libyan prime minister's detention for several hours by gunmen raised concern about new supply disruptions from the North African country.
At 1219 GMT the rouble-denominated MICEX had risen 1.1 percent to 1517 points. The dollar-denominated RTS was up 1.3 percent at 1480 points, its strongest level in almost three weeks.
Signs of progress in breaking the U.S. budget impasse appeared overnight, boosting demand for riskier assets globally.
Shares in Novatek outperformed, jumping 4.4 percent, boosted by comments of the co-owner Gennady Timchenko on plans to battle for gas assets with Rosneft and extend business in Asia.
Shares in Russia's chief gas producer Gazprom added 1.4 percent on Thursday, at its highest in a year. Sberbank added 1.8 percent.
The Russia MSCI index outperformed broader emerging markets, rising 1 percent versus 0.5 percent respectively.
'There was strong demand for our market in recent days,' said a trader at a Russian investment bank.
'Prices in the most liquid shares are rising. Some investors were underweight Russia and now are buying into index stocks'.
Oil and gas stocks represent 60 percent of Russia MSCI index dividends.
The weighted average dividend yield for stocks included in the index stands at 4.4 percent, higher than that of any other major emerging market, Sberbank Investment Research strategists said in a note.
The rouble also regained ground. It edged up 0.1 percent against the dollar at 32.30 and was flat versus the euro at 43.71, leaving it steady at 37.43 against the dollar-euro basket.
For rouble poll data see
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(Additional reporting by Olga Popova and Vladimir Abramov; writing by Maya Dyakina; editing by Stephen Nisbet) Keywords: RUSSIA MARKETS/
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