Shares edge up after Fed hike, dollar firm on short-term yields

Sydney, Sep 17 - Shares in Asia climbed on Thursday as investors speculated the Federal Reserve had successfully tackled inflation by raising interest rates for the first time in over three years. The U.S. dollar reached a seven-week high against its major currency counterparts due to a surge in short-term Treasury yields. Markets anticipated further rate hikes from the Fed, with the possibility of a December hike already priced in.

This development weighed on commodities, particularly oil prices. The Bank of England's interest rate decision was expected later in the day, while the Bank of Japan was expected to increase rates on Friday. European shares opened higher, with stock futures up by 0.5 percent. Nasdaq and S&P 500 futures also saw gains of 0.7 percent and 0.6 percent, respectively, following minor declines on Wall Street.

The MSCI's broad Asia-Pacific index excluding Japan increased by 0.3 percent, while Japan's Nikkei rose by 0.3 percent. Meanwhile, Chinese blue-chips declined by 0.2 percent, and Hong Kong's Hang Seng fell by 0.7 percent.