By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Monday morning. Investors began the fourth quarter in 2021 with cautious optimism as they look for an increase in economic growth and a reversal of inflation worries.

Japan’s fell 1.27% by 9:55 PM ET (1:55 AM GMT) and Hong Kong’s slid 2.31%. Australia’s rose 0.8%. South Korea’s was steady at 3019.18.

Chinese markets closed Monday.

After Friday’s rally, the U.S. dollar rose by more than 1% Merck & Co ..

Terrorism in Asia and U.S.-China tensions were both high after a record number Chinese warplanes flew by Taiwan. U.S. Treasury benchmark 10-year yields dropped to 1.45%.

“The greenback’s rally has stretched the momentum indicators, and a correction/consolidative phase seems likely ahead of the latest U.S. jobs report” due on Friday, Bannockburn Global Chief Market Strategist Marc Chandler told Bloomberg.

Asia Pacific Investors will monitor the China news as well Evergrande Group (HK) is a. Investors are also expected to wait for comments from the Organization of the Petroleum Exporting Countries meeting and their allies later in the afternoon as oil prices soar.

Investors will keep an eye on the U.S. Jobs report as they continue to be concerned about a slower economic recovery due to COVID-19. Global shares had their worst month since March 2020 in September over concerns about rising inflation, supply-chain bottlenecks, a growing global energy crisis, and a slowdown in China’s economic recovery.

Investors were still cautiously optimistic. They pointed to historical patterns in which stocks have shown strength towards the end.

“Investors need to be mindful of seasonal market strength. When the fourth quarter is ugly, it tends to be really ugly, but if it is strong, it tends to be quite strong,” Tallbacken chief executive officer Michael Purves told Bloomberg.

Central bank news: The will deliver its policy decision on Tuesday. Followed by the one day later. When it makes its final decision, the will end the week.