HONG KONG: Asian shares fell yesterday after a global rally powered by the US Federal Reserve's decision to maintain its vast stimulus programme, with a surprise interest rate hike dragging down Indian stocks.
Tokyo slipped 0.16 per cent, or 23.76 points, to 14,742.42 as the dollar held firm on better-than-expected US economic data. Sydney fell 0.36 per cent, or 18.8 points, to 5,276.7.
Mumbai fell 1.85 per cent to 20,263.71 points after India's new central bank governor, Raghuram Rajan, surprised markets with a bold decision to hike interest rates on fears of rising inflation.
Markets in Seoul, Shanghai, Hong Kong and Taipei were closed for public holidays.
Stock markets across the globe jumped following the Fed's announcement on Wednesday that it would hold off from tapering its US$85-billion-a-month bond-buying scheme.
Developing economies such as Indonesia, the Philippines and India breathed a sigh of relief after suffering a heavy sell-off in August as investors bet on the Fed winding down its quantitative easing (QE) policy.
But Asian markets took a breather yesterday as investors pondered the Fed's next move.
"Today looks like being one of those Fridays where markets take stock after a big news week," said chief market analyst at CMC Markets.
In other markets:
* Wellington was down 0.48 per cent, or 22.66 points, to 4,730.38. Telecom Corp lost 1.52 perent to NZ$2.27 while Fletcher Building plunged 2.54 perent to NZ$9.58.
* Jakarta eased 1.86 per cent, or 86.91 points, to 4,583.83. Bank Negara Indonesia fell 3.89 perent to 4,325 rupiah, while miner Aneka Tambang climbed 0.66 pernt to 1,520 rupiah.
* Manila fell 1.34 per cent, or 87.25 points, to 6,424,45. Ayala Corp slipped 0.48 per cent to 616 pesos and its property arm Ayala Land lost 3.23 per cent to 28.50 pesos.
* Bangkok lost 0.15 per cent or 2.30 points to 1,486.76. TMB Bank fell 4.26 per cent to 2.70 baht while Thai Airways gained 4.10 per cent to 20.30 baht. AFP