* Fed pumping $40 bln a month into U.S. economy
* Rebar up 2.43 pct in morning, iron ore expected to see boost
* Impact of Fed stimulus seen short-lived
SHANGHAI/BEIJING, Sept 14 - Shanghai rebar futures ended the Friday morning session up 2.43 percent as the market responded positively to news that the Federal Reserve would seek to boost U.S. growth, giving hope that iron ore prices will resume their early-week rally after two consecutive daily declines.
The U.S. central bank said on Thursday that it would pump $40 billion into the world's largest economy every month until it saw a sustained upturn in the jobs market.
The move has already perked up Asian share markets, pushed the euro up to a three-month high against the dollar and sent copper and gold prices to multi-month highs, and traders said iron ore will also feel the benefit.
"No matter whether demand improves or not, I expect iron ore prices to rise a bit today, following a big rally in other commodities like copper and in rebar futures," said an iron ore trader based in eastern coastal Shandong province.
Some were still cautious. The most active rebar contract for January delivery closed at 3,539 yuan per tonne on Friday morning, but it retreated from a session high of 3,623 yuan, and traders said the impact of the Fed's move could be short-lived.
"It would still require complementary domestic policies -- only if actual demand improves will spot traders have the confidence to replenish their stockpiles," said a trader based in Beijing.
Traders have been desperately seeking out the positives in the market after a slump beginning in early July sent iron ore prices tumbling by a third and Shanghai rebar to a record low last week.
News that Beijing would approve spending of more than $150 billion on a series of big infrastructure projects was enough to kickstart the market, sending iron ore prices back above the psychologically important $100 per tonne level this week.
But the impact of the stimulus soon faded, and the benchmark 62 percent rate .IO62-CNI=SI shed $2 on Thursday to end at $96.1 per tonne, according to the Steel Index.
Shanghai rebar futures and iron ore indexes at 0330 GMT
Contract Last Change Pct Change
SHANGHAI REBAR* 3539 84.00 2.43
PLATTS 62 PCT INDEX 97.75 -1.50 -1.51
THE STEEL INDEX 62 PCT INDEX 96.1 -2.00 -2.04
METAL BULLETIN INDEX 97.89 -2.90 -2.88
#Index in dollars/tonne, show close for the previous trading day