By Gina Lee

Investing.com – Asia Pacific stocks were mostly up on Friday morning, with a rebound in Chinese technology shares giving sentiment a boost. Investors worried that inflation will cause central banks to tighten their monetary policies faster than they expected continued falling U.S. Treasuries.

Japan’s rose 1.06% by 9:47 PM ET (2:47 AM GMT) and South Korea’s jumped 1.63%.

In Australia, the rose 1.10% and Hong Kong’s gained 0.49%.

China’s edged down 0.12% while the inched down 0.05%.

After the two-day index drop, losses were recouped in the U.S.

The benchmark increased as much as three basis points after trading resumed following Thursday’s holiday.

While the spread in yield between 30-year and 5-year maturities has narrowed, bonds dropped on Wednesday following U.S. data that showed inflation at its highest levels for three decades. The October consumer price index (CPI), grew by 6.2% and 0.9% respectively year-on–year. Core CPI was up 4.6% year on year and 0.6% month to month.

Nasdaq Gold Dragon Index, an index that measures U.S. stocks listed in China, increased 5.1%. It saw its largest gains since Oct. 7, when it was helped by a 5.1% increase in the Nasdaq Golden Dragon Index. Alibaba Group Holding Ltd.’s successful shopping festival (NYSE:). Alibaba raised CNY540.3 billion (or $84.45 billion)

Shares rose after a report by Didi Global Inc., a mobile transportation company (NYSE:), said that it is relaunching its apps including the ride-hailing service.

Meanwhile, Chinese President Xi Jinping delivered the first doctrine on Communist Party history by a Chinese leader in 40 years, as the Chinese Communist Party’s Central Committee concluded its meeting on Thursday.

Xi is expected to also meet Joe Biden on Monday in the U.S., where they will discuss trade and recovery from COVID-19.

Global shares are set to see their first weekly decline since October 2021 due to inflationary pressures. Some investors were more concerned about movements in bonds and maintained a cautious optimism regarding stocks.

“Inflation could remain elevated in the coming months, and each inflation release that comes in above expectations has the potential to cause volatility in rate and equity markets, but we still don’t expect inflation to derail the equity rally,” UBS Global Wealth Management chief investment officer Mark Haefele said in a note.