Asian stock markets turned mostly lower in late morning trade on Friday, following the the U.S. Federal Reserve's decision to raise the interest rate it charges banks for emergency loans.
The Fed cast its decision to raise the discount rate to 0.75 percent from 0.5 percent as a response to improved financial market conditions. The benchmark federal funds interbank lending rate was left unchanged near zero percent.
Japan's Nikkei share average dipped 0.7 percent on Friday, with investors turning cautious after the U.S. Federal Reserve's decision to raise the discount rate jolted U.S. equities futures and commodities.
The dollar's rise to a one-month high against the yen helped lend some support to the Nikkei, with exporters such as Canon edging higher.
The Nikkei 225 [JP;N225 10210.53 -125.1602 (-1.21%) ] dipped 0.7 percent to 10,259.43.
The broader Topix index slipped 0.7 percent to 898.05.
Large banks dipped after the Fed raised the interest rate it charges banks for emergency loans.
Mizuho Financial Group, Japan's second-largest bank, lost 1.7 percent to 173 yen and top lender Mitsubishi UFJ Financial Group lost 1.1 percent to 451 yen. Sumitomo Mitsui Financial Group, Japan's third-largest bank, dipped 0.2 percent to 2,861 yen.
The Korea Composite Stock Price Index (KOSPI) was down 1.5 percent to 1,596.55 points.
Banks and steel issues retreated but trimmed earlier larger losses.
POSCO, the world's No.4 steelmaker, edged 0.37 percent lower, and Hana Financial Group turned flat.
Retail issues outperformed, with Lotte Shopping, South Korea's No.2 retailer by market value, gaining 1.39 percent and Shinsegae, the country's No.1, rising 1.55 percent.
Shipping firms advanced helped by gains in Baltic Dry Index, which tracks the cost of shipping key commodities. Shares in Hyundai Merchant & Marine were up 0.53 percent and STX Pan Ocean climbed 1.34 percent.
Australian stocks were flat-to-lower after results from National Australia Bank came in below its peers' and investors assessed the impact of the U.S. Federal Reserve's surprise hike in its discount rate.
Australian stocks turned lower on Friday after results from National Australia Bank came in below its peers' and investors assessed the impact of the U.S. Federal Reserve's surprise hike in its discount rate.
The benchmark S&P/ASX 200 index [AU;XJO 4627.3 -27.614 (-0.59%) ] was down 0.4 points at 4,638.10.
National Australia Bank, Australia's top lender, reported flat first-quarter cash earnings of A$1.1 billion ($991.9 million). This figure lagged rivals and sent its shares down 3 percent. But it also said bad debt charges were not expected to return to recent peaks.
Other top banks succumbed to some mild profit-taking after recent steep gains, with Commonwealth Bank down 0.5 percent.
Surfwear retailer Billabong International shares fell 3.0 percent to A$10.32 after the company posted a 15 percent slide in first-half profit, hurt by the strong Aussie dollar.
Hong Kong shares were sharply lower on Friday, led down by commodity stocks, after crude and metal prices fell following the U.S. Federal Reserve's decision to raise the interest rate it charges banks for emergency loans.
The benchmark Hang Seng Index shed over 2 percent, sliding below the key 20,000 mark at one point.
New Times Energy climbed 4.7 percent after the firm said it would buy a 90 percent stake in Chinese gold miner and refiner Hongwen Gold from a third party for HK$600 million ($77.24 million).
Media and investment holding firm Sing Tao News Corporation tumbled over 4 percent as it said it was exploring the feasibility of a separate listing of a business unit.
In Southeast Asia, Singapore's Straits Times Index came under pressure to lose 0.5 percent despite news the government has raised its economic growth forecast for this year after reporting better-than-expected fourth-quarter data, citing a pickup in trade and industrial production and stable financial markets.
Singapore Technologies Engineering, the world's largest aircraft maintenance firm, gave up 1.4 percent even after posting a 27 percent rise in fourth-quarter net profit to S$129.7 million.
The Chinese markets are closed for lunar new year holidays.
