In a statement that marked the end of the era of "accommodative" monetary policy, the Fed bumped up its policy target by a quarter of a percentage point.

"FOMC (Federal Open Market Committee) meeting was a no-surprise event and investors are likely to reassess their investment appetite in the emerging market space," said Taye Shim, head of research at Mirae Asset Sekuritas.

"With easing risks related to the FOMC and trade-related issues, investors are likely to look at emerging markets from a more optimistic perspective," added Shim.

Indonesia's Jakarta Composite index <.JKSE> added up to 0.9 percent, with consumer staples and energy stocks aiding the rise.

Consumer goods company Unilever Indonesia Tbk PT was the top boost, having risen 2.1 percent, while United Tractors Tbk PT climbed 3.1 percent.

Indonesia's central bank is widely expected to raise its benchmark interest rate for the fifth time since mid-May to support the rupiah, which has lost about 9 percent against the dollar this year amid a sell-off of Indonesian assets due to rising U.S. interest rates, contagion fear from other emerging market crises and the Sino-U.S. trade war.

Bank stocks assisted Singapore shares <.STI> advance as much as 0.7 percent, for a seventh straight session in the black.

Lender Oversea-Chinese Banking was the biggest contributor to gains in the benchmark.

"After yesterday's late afternoon unwind, there's some bargain-hunting going on after that dip," said Stephen Innes, Head of Trading, APAC at OANDA.

The Philippine index <.PSI>, however, declined for its third session and lost up to 0.6 percent.

Telecom and utilities accounted for most of the fall with top drag telecom service provider PLDT Inc falling as much as 5.1 percent to its weakest level in over two months.

Innes blamed the fall on a number of factors including twin deficits, the prospect of rising inflation and an expected hawkish rate hike.

"The BSP is going to come out with interest rates, guns blazing, but they have to tame inflation but also tame the currency a little bit," said Innes.

Inflationary pressures in the Philippines have been steadily rising since January due to higher taxes, a weak peso, and rising food and fuel costs.

(Reporting by Devika Syamnath in Bengaluru; Editing by Sunil Nair)

By Devika Syamnath