Japanese shares closed lower on Wednesday after the U.S. Federal Reserve signaled it may quicken the pace of its interest rate hikes.

The Nikkei 225 fell 102.85 points, 0.87% to 11,739.12, the lowest level since Feb. 25. The TOPIX Index declined 0.72% and closed at 1,193.85.

Yesterday, the Federal Reserve raised its main interest rates by a 25 basis points.

"The Fed’s comments underlined a consensus that the U.S. economy is in good shape. But our concern is how rapidly the Fed is going to raise interest rates and if that move will kill what looks like a bubble on land prices and significantly hurt consumer spending there," said Naoyuki Torii, from Fukoku Capital Management. "That’s a risk scenario here given data this morning that showed slower-than-expected exports to Asia cast a shadow over the Tokyo market," he said.

Advantest fell 0.61% to 8110 yen, Canon declined 0.54% to 5520 yen. NEC fell 1.24% to 637 yen. Sony rose 1.15% to 4380 yen.

Daiei tumbled 2.21% to 221 yen.

Honda was down 0.57% to 5270, Nissan Motor fell 0.28% to 1087 yen, Toyota added 0.25% to 4010 yen.
Yto-Yokado declined 0.70% to 4230 yen.