Regional stocks fell in line with broader Asian peers, after the U.S. central bank hiked rates for the fourth time this year and stuck by its plan to keep withdrawing support from an economy it views as strong.

"Against the backdrop of the trade war and weak economic data from major economies, people were hoping the Fed would extend a lifeline," said Fio Dejesus, an equity research analyst at RCBC Securities in Manila. "But their mandate was different from what the market hoped for."

Recent disappointing data from the United States on slowing of job growth in November and a cooling housing market, along with weak manufacturing data from China heavily weighed on investor sentiment, sparking concerns over global growth.

The Indonesian index <.JKSE> finished lower and was the worst performer in the region, with financial stocks coming under pressure.

Shares of Bank Central Asia Tbk and Bank Mandiri (Persero) Tbk were among top losers, falling 2.2 percent and 1.7 percent, respectively.

Thailand's energy-heavy index suffered an additional blow after oil prices resumed their fall on Thursday amid worries of a supply glut and gloomy outlook for demand.

Shares of oil and gas explorers PTT PCL and PTT Exploration and Production PCL shedding 0.5 percent and 1.7 percent, respectively.

Singapore's index <.STI> gave up modest gains early in the session to end lower, with shares of port operator Hutchison Port Holdings Trust losing 1.9 percent while those of agribusiness operator Wilmar International Ltd ending 1 percent lower.

The Malaysian index <.KLSE> edged lower with Sime Darby Plantation Berhad's counter closing 1.4 percent down, while that of IHH Healthcare Berhad ending 2.6 percent lower.

Vietnam's index <.VNI> traded sideways through most of the session to edge down at close.

The Philippine index <.PSI> lost most during early trade but pared losses to inch down at close. Industrial stocks were the biggest drag on the index, with shares of sector heavyweight SM Investments Corp closing 2.1 percent lower.

(Reporting by Rashmi Ashok in Bengaluru; Editing by Rashmi Aich)

By Rashmi Ashok