By Andrew Torchia

DUBAI, March 16 (Reuters) - Middle Eastern stock markets rose on Thursday, led by Egypt, after the U.S. Federal Reserve hiked interest rates as expected but signalled no acceleration in the pace of monetary tightening.

But Gulf bourses lagged emerging markets in general because of concern that low oil prices and government austerity measures will continue to weigh on corporate earnings. Among planned austerity, the six-nation Gulf Cooperation Council plans to introduce a 5 percent value-added tax in 2018.

The Saudi stock index .TASI rose 1.3 percent, while Dubai .DFMGI was up 1.2 percent and Qatar .QSI added 0.7 percent. MSCI's emerging market index .MSCIEF surged 2.0 percent.

Saudi banks outperformed for a second straight day, after Moody's raised its outlook for the Saudi banking sector to stable from negative on Wednesday. Banque Saudi Fransi 1050.SE rose 3.2 percent and National Commercial Bank 1190.SE , the largest lender, added 2.1 percent.

In Dubai, GFH Financial GFH.DU gained 1.5 percent and Shuaa Capital SHUA.DU added 1.1 percent. GFH confirmed earlier this week that the two firms were in talks to merge and after a week of silence, Shuaa issued a brief statement on Thursday saying preliminary discussions were taking place but no decision had been reached.

Qatar was buoyed by a 1.6 percent rise by Qatar National Bank QNBK.QA , although Qatar Navigation QNNC.QA sank 5.1 percent as it went ex-dividend.

Abu Dhabi's index .ADI rose 1.1 percent, but was restrained by Abu Dhabi Commercial Bank ADCB.AD , which fell 2.4 percent as it went ex-dividend.

Five central banks in the GCC raised interest rates in line with the Fed and the sixth, Oman, had already been allowing its policy rate to drift higher in recent months.

However, market interest rates in the Gulf will not necessarily rise because a partial rebound in oil prices and governments' international bond issues have eased pressure on state spending. This could improve liquidity in the money markets over coming months.

In Egypt, the index .EGX30 jumped 1.9 percent as El Sewedy Electric SWDY.CA climbed 2.5 percent after signing a memorandum of understanding with the Egyptian Electricity Transmission Co to build a wind power plant in collaboration with Japan's Marubeni.



THURSDAY'S HIGHLIGHTS



SAUDI ARABIA



* The index .TASI climbed 1.3 percent to 6,922 points.



DUBAI



* The index .DFMGI rose 1.2 percent to 3,521 points.



ABU DHABI



* The index .ADI gained 1.1 percent to 4,425 points.



QATAR



* The index .QSI added 0.7 percent to 10,361 points.



KUWAIT



* The index .KWSE edged up 0.2 percent to 6,811 points.



EGYPT



* The index .EGX30 jumped 1.9 percent to 12,984 points.



OMAN



* The index .MSI edged up 0.1 percent to 5,668 points.



BAHRAIN



* The index .BAX rose 0.3 percent to 1,375 points.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ OPEC in first joint oil cut with Russia since 2001, Saudis take "big hit" urn:newsml:reuters.com:*:nL8N1DW00T

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Mark Potter) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))