By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Tuesday morning, with investors digesting soaring U.S. Treasury yields that weighed on U.S. counterparts, alongside an oil rally that triggered inflationary concerns.

Japan’s was down0.68% by 9:57 PM ET (1:57 AM GMT) and South Korea’s fell 0.82%.

In Australia, the fell 0.87% while Hong Kong’s gained 0.60%.

China’s inched down 0.11% and the was down 0.26%. The , , and purchasing managers indexes are due on Thursday.

The also pledged to safeguard the healthy development of the real estate market and protect home buyers’ rights amid China Evergrande Group’s (HK:) ongoing debt crisis.

Shares fell in America as the 10-year benchmark yield of the U.S. briefly reached 1.5%. It was the highest level since June 2021. Trader’s increased expectations of U.S. Federal Reserve assets tapering sooner than expected led to the 2-year yield reaching its highest point since March 2020.

“Central bankers have set out how they want to ‘normalize’ monetary policy for some time. It could be underway soon. This realization has the potential to provoke some volatility in rates and equities,” AXA Investment Managers chief investment officer for core investments Chris Iggo said in a note.

Fed Chairman Jerome Powell will be joined by the Bank of England’s Andrew Bailey, the Bank of Japan’s Haruhiko Kuroda, and the European Central Bank (ECB)’s Christine Lagarde at an ECB Forum on Central Banking panel on Wednesday. Lagarde will address the forum one-day before the panel.

Janet Yellen, U.S. Treasury secretary will be joining him to give evidence at a Senate Banking Committee hearing Tuesday. A House Financial Services Committee hearing will follow on Thursday.

Senate Republicans defeated a bill that would have allowed the debt ceiling to be suspended into December 2022, and kept the government operational beyond Sep. 30. If no action is taken on Thursday, government funding will expire. This could have serious economic implications.

As fears about an international energy shortage increase, commodities continued to show positive signs. rose to their highest level in nearly three years, while topped the $75 mark. Cryptocurrencies also clawed back their losses from the previous week’s volatility unleashed by China’s latest crackdown, with trading around the $43,000 mark.