Asian stock markets showed a mixed performance on Thursday, reacting to the recent decision by the U.S. Federal Reserve to raise interest rates for the first time in three years. The Fed’s move brought its key interest rate to a target range of 3.75%-4.00%, aiming to bring down U.S. inflation, which has been running above its 2% target. While U.S. stock futures rose following the announcement, Wall Street had closed lower the previous day, with major indices like the S&P 500 and Dow Jones Industrial Average falling. In Asia, Japan’s Nikkei 225 index rose slightly by 0.2% to 64,067.53, and South Korea’s Kospi gained 0.9% to 6,778.49. However, other markets saw declines, with Hong Kong’s Hang Seng falling 0.7% and China’s Shanghai Composite dropping 0.4%. Australia’s S&P/ASX 200 and Taiwan’s Taiex both posted gains, with the latter rising 1.3%. India’s Sensex also edged up by 0.3%. Lorraine Tan, director of equity research for Asia at Morningstar, noted that the market’s response to the Fed’s rate hike was largely in line with expectations. However, ongoing tensions in the Middle East, particularly the war in Iran, are likely to continue pressuring inflation. This has kept government bond yields elevated, with the two-year U.S. Treasury yield rising to 4.72% and the 10-year yield remaining around 5.00%. In the currency and energy markets, the U.S. dollar weakened slightly against the Japanese yen, falling to 156.04 yen from 156.26 yen. The euro also saw a slight increase against the dollar. Meanwhile, oil prices edged higher due to continued disruptions in oil supply. The Strait of Hormuz, a critical shipping route for global oil, remains partially blocked, and Saudi Arabia’s recent closure of a major pipeline has added to supply concerns. As a result, Brent crude, the international benchmark for oil prices, rose 0.1% to $105.89.