By Gina Lee

Investing.com – Asia Pacific stocks were up on Wednesday morning, as investors digested the latest Chinese inflation data. After the Federal Reserve Chair reiterated its commitment to combating inflation, their U.S. counterparts rose as well.

China’s was up 0.22% by 9:01 PM ET (2:01 AM GMT) and the gained 0.77%. The consumer price index (CPI), which was released in earlier parts of the day, grew by 0% in December and 1.5% in January. Year-on-year, the (PPI), grew 10.3%.

Stocks of Chinese companies that are listed in the U.S. rose, with the Nasdaq Golden Dragon China Index rising as high as 4.7%. But Goldman Sachs Group Inc. cut its forecast for China’s growth in 2022 as the country deals with its latest COVID-19 outbreaks involving the omicron variant.

Hong Kong’s rose 1.56%.

Japan’s jumped 1.72% and South Korea’s rose 1.24%.

The Australian gained 0.50%

Powell stated that the Fed would take action if necessary to control high inflation in his hearing before the Senate Banking Committee. He also indicated that asset tapering will likely begin by 2022.

The 2022 year has seen a bumpy start as investors prepare for an increase in interest rates to stop inflation.

“The market is grappling with a broad-based rotation and the potential for a hastened pace of rate hikes, which is leading to volatility,” UBS Private Wealth Management managing director Greg Marcus said in a note.

“Regardless of the volatility seen in markets so far this year, corporate fundamentals are strong, and we are expecting double-digit earnings growth this year, which should bode well for stock prices in 2022.”

However, UBS Global Wealth Management strategists, from Goldman Sachs to UBS Global Wealth Management, seemed calm and confident that equities could weather both rising rates of interest and higher yields.

The U.S. publishes its data on the data front. It follows with the Thursday.

On Thursday, Lael Brainard’s nomination for Fed vice chair will be heard by the Senate Banking Committee. On Thursday, Thomas Barkin from Richmond Fed, Patrick Harker of Philadelphia Fed, and Charles Evans, President Chicago Fed, will speak.