Asian stocks were down Thursday following the U.S. central bank's decision to further trim its stimulus of the world's biggest economy.
Japan's Nikkei index declined as much as 3.2 percent during trading to a two-and-half-month low, before recovering to finish down 2.5 percent.
Other Asian stocks were also lower, including Hong Kong's Hang Seng, which closed down one-half percent.
European stocks were also lower in early trading.
On Wednesday, the U.S. Federal Reserve said it will trim another $10 billion from its bond buying program next month, raising fresh concerns about the stability of emerging markets.
The policy, which is on pace to end altogether by the end of the year, was meant to pump more money into the U.S. economy, boost job growth and keep interest rates low.
But as interest rates edge higher, analysts worry investors will pull their money from emerging economies and seek higher returns in the U.S.