Asian shares gained across the board on Thursday as risk appetite revived after the Federal Reserve reduced the number of interest rate hikes expected this year, while the dollar nursed substantial losses.

A pedestrian looks at an electronic board showing the stock market indices of various countries outside a brokerage in Tokyo, Japan, February 26, 2016.

Spreadbetters saw the upward momentum for equities being retained in Europe, forecasting a higher open for Britain's FTSE .FTSE, Germany's DAX .GDAXI and France's CAC .FCHI

The potential for more money to continue flowing into commodities and equities, rather being lured by higher U.S. interest rates, boosted crude oil and emerging market stocks.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed to a two-month high and was last up 1.9 percent.

Australian stocks added 1 percent, South Korea's Kospi .KS11 rose 0.9 percent and Shanghai .SSEC was up 1 percent. Japan's Nikkei .N225 pared earlier gains and fell 0.6 percent as the dollar slipped versus the yen.

Asian equities took their cue from Wall Street, where the S&P 500 .SPX closed at its highest level this year following the U.S. central bank's cautious message. [.N]

The Fed concluded a closely watched two-day policy meeting on Wednesday by leaving interest rates untouched, as expected, and signaling fewer rate hikes in coming months as the United States continues to face risks from an uncertain global economy.

"Removing interest rate risk from the near horizon has been enough to coax money back into risky assets, but price increases in gold and the depreciation of the dollar would indicate that quantification of the degree of risk still varies greatly," said Martin King, co-managing director at Tyton Capital Advisors.

Global growth concerns, particularly regarding China, have rattled markets through much of this year, and this was seen to have influenced the Fed's position.

"In our view, the Fed has become increasingly responsive to changes in financial conditions. We believe this sensitivity is a problem since we see the Fed's intended policy actions as contributing to the very financial conditions that led to its eventual inaction," strategists are Barclays wrote.

The dollar index hovered near a one-month low of 95.539 .DXY hit overnight after the Fed reduced its expectations for interest rate hikes in 2016 to two from four.

The euro was near $1.1244 EUR=, its highest since March 15. The dollar descended to a three-week low below 112 yen JPY.

Commodity-linked currencies rose strongly as products such as oil and iron ore soared after the Fed's decision.

The Australian dollar, which already jumped 1.2 percent overnight, caught a fresh lift from an upbeat local jobs report and rose to an eight-month high of $0.7620 AUD=D4.

The Canadian dollar was firm at C$1.3098 to the dollar CAD=D4 after rallying nearly 2 percent to a four-month peak of C$1.3094 overnight.

Emerging market currencies such as the Malaysian ringgit and Indonesian rupiah also firmed. The South Korean won KRW=KFTC touched its highest point against the dollar since the end of December.

Oil prices also rose as major producers firmed up plans to meet in Qatar to discuss an output freeze. U.S. crude oil rose to a three-month peak of $39.38 a barrel CLc1 after surging nearly 6 percent overnight. Brent LCOc1 was up 27 cents at $40.60 a barrel. [O/R]

Three-month copper on the London Metal Exchange CMCU3 traded up 1.5 percent at $5,009.50 a tonne. A weaker greenback tends to favor commodities traded in dollars by making them cheaper for non-U.S. buyers. [MET/L]

Spot gold XAU= slid 0.4 percent to $1,258.15 an ounce as the precious metal lost steam following Wednesday's 2.5 percent surge. [GOL/]

Spot iron .IO62-CNI=SI rose 1.5 percent to $52.50 a tonne late on Wednesday, helping the metal reverse some the steep losses suffered over the past week.

Source: Reuters