Shares edged up in Asia on Thursday as investors bet the US Federal Reserve is finally getting the jump on inflation, delivering its first rate hike in more than three years and calming a global bond selloff that had sent long-term yields soaring.

In Hong Kong, the benchmark Hang Seng Index opened down 233 points, or 0.94 percent, at 24,480.

The tech index fell 44 points, or 1.03 percent, to 4,281 while the China Enterprises Index slipped 79 points, or 0.97 percent, down to 8,127.

Up north, the Shanghai Composite Index opened down 14 points, or 0.38 percent, at 3,877.

The Shenzhen Component Index was 44 points, or 0.33 percent, lower at 13,409 while the ChiNext Index edged down 14 points, or 0.43 percent, to 3,297.

In Tokyo, the Nikkei jumped 720 points, or 1.13 percent, up to 64,643 before giving back most of its gains to be just 64 points higher at one stage before noon.

In Seoul, the Kospi, like the Nikkei, was just two points up at one stage before lunch after having opened 61 points, or 0.91 percent, higher at 6,779.

The regional market openings came as the US dollar hit a seven-week high against its major peers, underpinned by a jump in short-term Treasury yields as markets ramped up wagers that the Fed may have to lift rates again, with a move by December fully priced in. That proved a headwind for commodities, with oil prices giving back ground.

The focus now shifts to the Bank of England, which is widely expected to leave interest rates steady later in the day, but all eyes will be on any hint about if high energy prices could force it to hike in November. The Bank of Japan, by contrast, is all but certain to lift interest rates on Friday.

As widely expected, the Fed raised interest rates by a quarter point overnight, but the unanimous decision tilted to the hawkish side, with the board signalling one more rate hike this year. Goldman Sachs now expects the Fed to hike rates again in October.

"We think October is the most likely time for the next move because it is most natural to deliver hikes that the Fed's open market committee presented today as supporting 'a timelier return' to the 2 percent target at consecutive meetings," said Goldman analysts in a note. "Additional hikes are possible but not our base case."

Commodity markets took a hit. Brent crude futures slipped 0.7 percent to US$105.05 a barrel after falling 2.7 percent overnight as Saudi Arabia was reportedly offering crude cargoes through Oman, easing some concerns about Middle East supply disruption. (Reuters & Xinhua)


Edited by Aaron Tam