Asian Stocks close: most stocks closed higher, Fed’s interest rate decision weighed on markets

Most Asian stock closed higher. The Fed's interest rate decision weighed on markets. The Fed kept its interest rate unchanged at 0.00-0.25%, but it cut its asset purchase program by another $10 billion to $15 billion. The Fed added it want to close its asset purchase program in the next month.

The Fed also said it will keep its interest rate unchanged for "a considerable time after the asset purchase program ends".

The Fed noted "there remains significant underutilization of labor resources".

The Fed raised its estimates for interest rate. The U.S. central bank said interest rate will be 3.75% at the end of 2017.

Japanese stocks were supported by the weaker yen. The yen declined after the Fed's interest rate decision.

The Bank of Japan (BoJ) Governor Haruhiko Kuroda on Thursday reiterated the central bank will adjust its monetary policy if needed to reach the 2% inflation target. He believes that Japan can reach a 2% inflation target at around fiscal 2015 to March 2016.

Mr. Kuroda also said that he is optimistic on a recovery of Japan's exports.

Japan's public pension funds increased local stock holdings by 393 billion yen in the second quarter.

The People's Bank of China took another step to ease potential cash crunch and old 10 billion yuan ($1.6 billion) of 14-day contracts at 3.5% today.

Hyundai Motor Co. shares dropped 9.2% after bidding for real estate.

Sony Corp. shares plunged 8.6% after widening its net loss forecast and suspending its annual dividend.

Indexes on the close:

Nikkei 225 16,067.57 +178.90 +1.13%

Hang Seng 24,168.72 -207.69 -0.85%

Shanghai Composite 2,315.93 +8.03 +0.35%