It comes after the US Federal Reserve hiked rates on Wednesday for the first time since December 2015 and signalled three more rises in 2017 as America's economy continues to strengthen. Shanghai's Composite Index fell 0.7 per cent, while the CSI 300 index fell 1.1 per cent. But the main action was elsewhere.
But what does the Fed's decision and the spectre of future hikes mean for emerging economies such as India?
However, not all of Asia suffered negative effects from the Fed's more hawkish tone.
"It wasn't just the move in the dots, it was the language that was used".
However, the upbeat outlook for the key driver of global growth was unable to comfort Asian traders anxious about a flood of cash out of their own economies as dealers look for better returns in the US. Higher rates can slow corporate profits and economic growth.
The dollar's value has been generally climbing since 2014 because the US economy seemed to be in better shape than those in Europe, Japan and elsewhere, even though USA growth was still only modest.
The S&P 500 was up 0.55%, the Dow Jones Industrial Average gained 0.55%, and the Nasdaq rose 0.62%. It now expects three 25 basis point rises in 2017 from two as of September, followed by another three increases in 2018 and 2019 before leveling off at the "normal" 3 percent.
"One of the reasons why a bond market sell-off this time around looks more sustainable is because it can be accompanied by higher equity markets", Peter Schaffrik, chief European macro strategist at RBC Capital Markets said.
However, the rest of the region may be less comforted by warnings of a capital flight from Asia's emerging markets back to USA assets.
Still, the USA central bank stands largely alone in actively tightening policy, boosting the United States dollar against its peers.
Koll said yen depreciation toward new decade lows of around 130 to 140 against the dollar "has become possible, which in turn suggests at least 20 to 30 percent upside to Japanese equities".
"What the Fed has actually said and (Federal Reserve chair) Yellen said at the press conference is all still very cautious", said Philip Borkin, senior economist at ANZ Bank New Zealand.
The Bank of Korea gave a taste of the challenges many EM economies face.
Sydney was 0.8 percent lower and Singapore 0.9 percent.
She said Fed officials, during their meeting, discussed Trump's economic plans as well as the surge in stock prices, bond yields and the dollar that's followed his election.
Utility stocks in the S&P 500 fell 2 percent, and real-estate stocks fell 1.9 percent.
That drew reaction from Switzerland, which is highly sensitive to the euro's moves.
Regarding local interest rates, Mr de Garis said that the Reserve Bank of Australia would welcome the Fed's rate rise, as it kept a lid on the Australian dollar, supporting export-oriented sectors.
Among commodities, oil prices stabilized as a tighter market looms in 2017 due to planned output cuts led by OPEC and Russian Federation.
Savers - including retirees - might see a tad of improvement in the rates they receive down the line on their certificates of deposit. Even after the slight drop Wednesday, the Dow remains up 10.6% since November 4, when the Dow closed at 17,888.28 points. While West Texas Intermediate oil dropped $1.94 to $51.04 a barrel on the New York Mercantile Exchange, Brent fell $1.82, or 3.3 percent, to $53.90 a barrel.
"The outlook for gold is not particularly great", said ANZ analyst Daniel Hynes. At one point Wednesday, the Dow was down more than 150 points after the Fed's announcement but it regained ground.