‘From market’s best friend to enemy’: Asian shares plunge as US Fed nails on rate rise

Markets in Japan and Korea lose more than 3% on fears of costlier borrowing, with FTSE and Wall Street on course to follow suit

Stock markets in Asia have tumbled to their lowest in nearly 15 months after America's central bank chief confirmed widely expected plans to tackle higher inflation with an increase in interest rates this year, beginning in March.

With investors also concerned about political tensions between Russia and Ukraine, supply chain problems and rising oil prices, the prospect of sustained increases in the cost of borrowing by the world's most powerful economy sent a spasm of anxiety through financial markets on Thursday.