By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Friday morning as investors continued to digest the latest, disappointing U.S. . The downward trend in the month and week ended with disappointing earnings and bond market gyrations due to continued inflation and tightening worries.

Japan’s inched down 0.01% by 10:15 PM ET (2:15 AM GMT) and South Korea’s was down 0.55%.

In Australia, the fell 0.62% and Hong Kong’s was down 0.58%

China’s edged down 0.18% while the edged up 0.13%. China Evergrande Group’s (HK) debt woes continue to be in the public eye, and payment for a bond that is dollar-denominated will take place on Friday. China’s next week will see data release, which includes the Manufacturing and Non-Manufacturing Purchasing Manager Indexes (PMI), as well the Caixin Manufacturing and Service PMIs.

In the U.S., data released on Thursday showed that the grew a smaller-than-expected 2% quarter-on-quarter, while the grew 5.7% quarter-on-quarter, in the third quarter of 2021. Separately 281,000 applications were received throughout the week.

Apple Inc.’s (NASDAQ:), and Amazon.com Inc.’s (NASDAQ:), disappointing results set the scene for a drop of more than $200B in total market value on Friday.

This was the benchmark falling, and the curve between 20-years and 30 years inverted. It had been inverted since 2020 when the U.S. government reinstated a 2-decade maturity. The Reserve Bank of Australia made the decision not to protect its 0.1% yield target, putting pressure on Australian debt.

In Europe, the handed down its policy decision on Thursday and renewed a pledge to conduct emergency bond-buying at a “moderately” slower pace.

While a broadly positive earnings season helped to underpin global shares and has led to a rise in expectations about interest rate hikes, supply-chain bottlenecks and higher costs of raw materials pose inflation risk.

“If we’re going on the right path, but at a slower pace, which means the policy support persists for longer,” then that’s “still positive for markets,” State Street’s head of North America multi-asset strategy Lee Ferridge told Bloomberg.

Meanwhile, G20 joint finance and health ministers will meet later in the day, with a leaders’ summit to take place over the weekend.