Fed Hikes Rates for First Time in Three Years

The Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00%, its first increase in over three years, citing still-elevated inflation.

This decision helped calm recent sell-offs in global bond markets and sent the US dollar surging to a seven-week high against major currencies.

Asian markets reacted positively, with Japan's Nikkei rising 0.3% and the MSCI Asia-Pacific index outside Japan also increasing by 0.3%, although Chinese blue-chip shares fell 0.2% and Hong Kong's Hang Seng dropped 0.7%.

Oil prices slipped back after surging due to Middle East supply concerns, as higher interest-rate expectations weighed on commodities.