By Gina Lee

Investing.com – Asia Pacific stocks were down on Monday morning. Investors in the region continued to sell off shares as concerns about China Evergrande Group’s (HK:) debt situation continues.

Japan’s fell 0.22% by 9:33 PM ET (1:33 AM GMT) as markets re-opened after a holiday. The will hand down its policy decision on Wednesday.

In Australia, the rose 0.35%, with the releasing the minutes from its latest meeting earlier in the day.

Hong Kong’s was down 0.28%.

For a holiday, the Korean and Chinese markets closed.

Treasuries maintained an advantage over the, which will be also handed down Wednesday. Investors will be looking for clues about the central bank’s schedule for asset tapering and interest rate hikes.

Officials including Fed Chairman Jerome Powell, Governor Michelle Bowman and Vice Chairman Richard Clarida will discuss the economic recovery from COVID-19

Across the Atlantic, the will hand down its policy decision on Thursday.

Asia Pacific concerns include whether China Evergrande Group is. There is an $83.5m interest payment on the March 2022 bond, and another $47.5m interest payment on September 29 for March 2024 notes.

“Markets are clearly having some angst on the potential spillover effects from Evergrande, along with some nervousness over the September FOMC meeting,” Cornerstone Wealth chief investment officer Cliff Hodge told Bloomberg.

“We’ve been in the camp that we’re overdue for a correction, something in the 5%-10% range that is a buyable pullback. At the moment, we’re not worried about a market crash. The Fed and Evergrande are not new.”

The Chinese property sector is one of several facing tightened restrictions as part of President Xi Jinping’s “common prosperity” initiative. It comes amid fresh COVID-19 outbreaks in the country denting the economic recovery and the prospect of reduced policy support from the People’s Bank of China.