Fed Rate Hike Triggers Mixed Asian Stock Reaction

Asian stocks were mixed on Thursday following Wall Street's decline after the Federal Reserve raised interest rates for the first time in three years. The rate hike, a quarter of a percentage point, brings the Fed's key rate to a target range of 3.75%-4.00%, aimed at controlling US inflation above its target.

The Nikkei 225 index was up 0.2% at 64,067.53, while South Korea's Kospi gained 0.9% to 6,778.49. In contrast, the Hong Kong Hang Seng fell 0.7% to 24,533.46.

Lorraine Tan, director of equity research for Asia at Morningstar, said market reactions were 'pretty much expected since the rate rise was also in line with market expectation,' but the ongoing Iran war is likely to keep pressure on inflation.