Asian shares trade mixed after Wall Street falls following Fed rate hike

Japan, South Korea and Australia gained, while Hong Kong and Shanghai declined after the US Federal Reserve raised its key rate by 25 basis points to 3.75-4 per cent

Asian shares were mixed on Thursday after Wall Street closed lower following the Federal Reserve's interest rate hike decision for the first time in three years.

US futures were higher.

The quarter of a percentage point increase brings the Fed's key rate to a target range of 3.75 per cent-4.00 per cent, as it attempts to control US inflation that's been stubbornly above its target.

Japan's Nikkei 225 index was 0.2 per cent higher at 64,067.53. South Korea's Kospi gained 0.9 per cent to 6,778.49. The Hong Kong Hang Seng fell 0.7 per cent to 24,533.46, while the Shanghai Composite index lost 0.4 per cent to 3,877.46.

Australia's S&P/ASX 200 climbed 0.3 per cent to 8,718.20.