By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Tuesday morning, with sovereign bonds remaining under pressure. The conflict in Ukraine and increased risk of tightening U.S. money policy continued to affect investor sentiment.

China’s fell 1.67% by 10:25 PM ET (2:25 AM GMT) and the slid 2.36%. Data from earlier this day revealed that the index grew 12.2% in January, while it rose 7.5% in February. The grew 6.7% and was 5.5% respectively.

The People’s Bank of China will also set the rate for one-year policy loans, while the lockdowns imposed in response to the latest COVID-19 outbreaks in the country pose a risk to demand.

Hong Kong’s was down 2.42%.

Japan’s edged up 0.18%. South Korea’s fell 0.74%, with the Bank of Korea releasing the .

Australia saw a drop in the of 0.61% with the release of the In the fourth quarter 2021, it also increased 4.7% quarter on quarter.

Soaring inflation, which was aggravated by Russia’s invasion of Ukraine on Feb. 24, continues to be a cause for concern for some investors.

“The poor stock market just can’t catch a break,” Susquehanna International Group derivatives strategist Chris Murphy told Bloomberg. “You get oil down $8 or $10 and now everyone is worried about U.S. Treasury yields. This just points out that there are many issues to address. When one goes to the backburner, something else pops up.”

On Wednesday, the U.S. Federal Reserve and the Bank of England will deliver theirs. At a conference, Christine Lagarde (President of the European Central Bank), Isabel Schnabel, Governing Board member Ignazio Vicsco and Philip Lane (Chief Economist) will talk on Thursday. The Bank of Japan will deliver its report on Friday.

Investors are watching the developments in talks between Russia and Ukraine, which could help to ease tensions. Russia has also begun the process to pay two of its bond coupons, due next week. Over a week since trade was stopped due to an historic short squeeze, nickel trading will resume at the London Metal Exchange on Wednesday.

Others warned of market volatility, due to risks such as the Ukraine crisis and central bank policy mistakes. The West continues to impose sanctions on Russia, making it difficult for Russia to continue paying its international debt.

“It’s going to take a while to tame inflation,” Morgan Stanley (NYSE:) Private Wealth Management managing director Kathy Entwistle told Bloomberg. “The regular consumer is the one that is going to feel it the most this year. And they’re the ones who held up the markets last year.”