Fed rate outlook shift buoys dollar, hurts shares

TOKYO (Reuters) - The U.S. dollar stood tall on Wednesday on growing expectations the Federal Reserve would raise interest rates earlier than expected, hitting shares and other assets that have benefitted from years of ultra-easy U.S. monetary policy.

Share of Apple Inc turned lower as the initial excitement over its announcement of new products including a watch, larger iPhones and a mobile payment service, quickly evaporated.

That may hobble the region's tech stocks, especially those linked to Apple's supply chain, though rival's of the Cupertino, California-based company could get a boost.

Japan's Nikkei fell 0.4 percent while MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.3 percent.

On Wall Street, Apple's decline and higher bond yields pushed stocks down. The S&P 500 lost 0.7, the Dow