Fed Hike Sends Dollar Soaring, Shares Higher Across Asia

The Federal Reserve's decision to raise interest rates by a quarter point has sent shockwaves through global markets, with shares ticking higher and the US dollar hitting a seven-week high against its major peers.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4%, while Japan's Nikkei gained 0.5%. In contrast, Chinese blue-chips slipped 0.4% and Hong Kong's Hang Seng fell 0.9%.

The US dollar's surge was driven by a jump in short-term Treasury yields, which reached their highest since July 2024. This move has been priced in for this tightening cycle, with three rate rises now expected.