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.

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.

Taiwan's Taiex jumped 1.3 per cent, while India's Sensex edged up 0.3 per cent.

On Wednesday, Wall Street's benchmark S&P 500 dropped 0.5 per cent. The Dow Jones Industrial Average fell 1.2 per cent, and the technology-heavy Nasdaq composite was mostly unchanged.

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

Following the Fed's announcements, the two-year US Treasury yield jumped to 4.72 per cent compared to around 4.67 per cent late Tuesday. The yield on the 10-year Treasury remained at around 5.00 per cent at an elevated level.