By Gina Lee

Investing.com – Asia Pacific stocks were mostly up on Wednesday morning after U.S. Federal Reserve Chairman Jerome Powell signaled that monetary policy could be tightened quicker than expected.

China’s was up 0.04% by 9:14 PM ET (2:14 AM GMT) while the edged down 0.15%.

The November was at 49.9. The National Bureau of Statistics data the previous day showed the at 50.1, and the at 52.3.

It is due to arrive later in this week.

Hong Kong’s rose 1.21%.

Japan’s rose 0.72%, with growing 1.2% year-on-year in the third quarter and the for November was at 54.5.

South Korea’s jumped 1.36%.

Australia’s GDP was at 0.38% lower than the US, and contracted 1.9%. However, it grew 3.9% in third quarter 2021. For November, the Australian Industry Group manufacturing index was 54.8.

Powell said the next Fed meeting should discuss whether to wrap up asset tapering a few months earlier, and did not use the word “transitory” to describe high inflation. This could also mean earlier-than-expected interest rate hikes.

The Fed chief’s U-turn on monetary policy comes as worries about current vaccines’ efficacy against the omicron COVID-19 variant continue to grow. Markets have recently been volatile as central banks begin withdrawing monetary policy support and omicron’s impact on the economic recovery remains unknown.

The yield gap on U.S. Treasuries of 5-year and 30 year maturities shrank in the U.S. session. It has been at its lowest level since March 2020.

Some investors remain positive despite the potential for economic problems ahead.

The flattening curve “doesn’t suggest imminent doom for the equity market in and of itself,” Charles Schwab (NYSE:) & Co. chief investment strategist Liz Ann Sonders told Bloomberg.

She added that “alarm bells go off in terms of recession” when the curve gets closer to inverting, and recommended also monitoring lower quality-corporate bond spreads for a gauge on sentiment

Investors are now awaiting U.S. data. The Institute of Supply Management Manufacturing PMI and Fed Beige Book will be released later today. Follow Friday’s U.S. Job Report, with non-farm payrolls.