By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Wednesday morning, getting off to a mixed start as short-term sovereign yields retreated ahead of the . Investors also digested.

China’s edged down 0.15% by 9:58 PM ET (1:58 AM GMT) and the Shenzhen Component inched down 0.08%. The earlier release of the reflected a slightly higher level than 53.4 for the previous month.

Chinese Premier Li Keqiang, however, warned the market that it is under new pressures. He appealed to stock up and ensure adequate winter food supplies. The government downplayed the significance of the appeal, despite speculation continuing about its existence.

Hong Kong’s edged down 0.12%. South Korea’s fell 0.77% while in Australia, the jumped 1.20%.

Japanese markets close for holidays

U.S. stocks closed at another record-breaking high. This is despite the COVID 19 supply chain disruptions and labor turmoils.

Treasury yields on two-year Treasury bonds fell. Short-term rates worldwide dropped globally due to Tuesday’s dovish announcement by the Fed. Australian bond yields declined. As a result, the U.S. yield curve sank and cash treasuries are not expected to trade in Asia.

Now all eyes will be on the Fed decision that is expected to be announced later in the day. Investors are divided by the timing of future interest rate increases. The announcement that the U.S central bank will start asset tapering is expected.

Some people expect a rise in 2022 while others believe it will happen in the early 2023s, but some predict the Fed will continue to avoid this issue.

“The big question will be whether the Fed will signal anything about when the interest rate hikes will start,” Robertson Stephens Wealth Management chief economist Jeanette Garretty told Bloomberg.

“I think they are going to try and avoid that.”

The Atlantic Council will deliver its policy decision Thursday.

The latest U.S. job data including the will be available on Friday. On Wednesday, the data will be available. On Thursday, trade data (including and ) will follow.