HSI Sheds Almost 1 Percent Over Fed Move

Hong Kong shares extended losses on Thursday after the Federal Reserve signalled a more aggressive approach to monetary policy while traders were also spooked by fresh trade war fears.

The Hang Seng Index fell 0.9 percent, to close at 30,440.

On the mainland, the Shanghai Composite Index eased 0.2 percent, to 3,044 and the Shenzhen Composite Index lost 0.6 percent, to 1,721.

Most Asian markets fell as the US central bank lifted borrowing costs, as expected, but indicated another two this year and four next year as the world's top economy continues to improve and inflation picks up.

But analysts say a People's Bank of China decision not to follow the Fed's rate rise indicated officials may be changing policy to combat slowing growth.

Tokyo ended 1 percent lower, Seoul fell 1.8 percent, Sydney dipped 0.1 percent and Singapore was off 1.1 percent.

Eyes now turn to the end of the European Central Bank's meeting later in the day, with the future of its crisis-era stimulus on the agenda. (AFP)