Japan's Nikkei stock index fell 1.4 percent on Friday, with resource-linked shares such as

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Mitsubishi Corp down after the US Federal

Reserve's discount rate hike jolted U.S. equities futures and commodities prices.

The dollar rose to a nine-month high against the euro and a one-month peak versus the yen, giving exporters an early boost. But this largely faded as investors became nervous about how overseas markets would respond to the Fed's move.

The Fed said it would raise the interest rate it charges banks for emergency loans to 0.75 percent from 0.5 percent, taking a step towards normalising emergency policy used to fight the worst financial crisis since the Great Depression. But the Fed also said the move did not signal any change in the outlook for the economy or for monetary policy, and left its benchmark interest rate unchanged near zero.

S&P 500 index futures lost 1.1 percent but falls seemed checked around that level. Still, investors were wary. "There's a lot of uncertainty about what will happen overseas later today, with a high chance that markets will fall," said Yutaka Miura, a senior technical analyst at Mizuho Securities. "It's hard to know, but next week could well see a bit of downward adjustment," he said.

The benchmark Nikkei shed 141.03 points to 10,194.66, while the broader Topix lost 1.3 percent to 893.43. Still, the Nikkei appeared headed for its second positive week in a row. Although Fed Chairman Ben Bernanke said last week the central bank could soon raise the discount rate it charges on short-term loans to banks, the timing came as a surprise.

While the Fed's action is unlikely to lead to an immediate rise in the benchmark federal funds rate, it could temper risk-taking and weigh on Tokyo shares, said Nagayuki Yamagishi, an investment strategist for Mitsubishi UFJ Securities.

"There had been a recent swing toward a mood of optimism (in financial markets) but that may quickly head back toward pessimism. It is the type of factor that short-term traders do not like," he said. Resource shares took a hit as both oil and gold were sold, with oil falling more than a dollar to just over $78 a barrel and gold shedding more than 1 percent.

Copper fell more than 1 percent and other metals also slid. Mitsubishi Corp lost 1.8 percent to 2,210 yen and fellow trading house Mitsui & Co shed 3 percent to 1,354 yen. Itochu Corp fell 2.6 percent to 704 yen. Smelter Toho Zinc fell 4.8 percent to 394 yen and ferronickel producer Pacitic Metals lost 3.6 percent to 650 yen.