Asian markets traded mixed, taking the cue from Wall Street where shares closed down after the Federal Reserve kept interest rates unchanged.

US shares saw choppy trade after the Fed held off raising rates for almost the seventh year, leaving it near zero on concerns over the global economy.

The US dollar recovered some ground, up 0.1% after falling over 1% on the Fed's decision overnight.

Japan's Nikkei 225 index was down 1.5% to 18,164.41 in morning trade.

Angus Nicholson, market analyst at trading firm IG said the Fed's decision to hold rates could influence other central banks.

"It is a telling sign for how much the global outlook has deteriorated in the past few months, with the likelihood for even an October hike now sitting at 19.2%," he said in a note on Friday.

Rest of Asia mixed

Chinese shares opened higher.

The Shanghai Composite index was up 0.8% to 3,111.13, while Hong Kong's Hang Seng index was higher by 0.4% to 21,933.95 in early trade.

In Australia, shares headed higher despite central bank governor Glenn Stevens saying the economy is going through a major adjustment during a parliamentary testimony.

The S&P/ASX 200 index was up 0.4% to 5,164.40 - erasing earlier losses.

South Korea's benchmark Kospi index traded flat at 1,977.79.

Policymakers in the country said the Fed's decision to hold rates meant a greater level of uncertainty would continue to plague financial markets for some time.

(BBC)