By Gina Lee

Investing.com – Asia Pacific stocks mixed on Friday morning, attempting to turn a new leaf after their worst quarter since the COVID-19 bear market. The risks posed by tighter U.S. Federal Reserve Monetary Policy and the conflict in Ukraine continue to be weighed by investors.

China’s was up 0.34% by 10:43 PM ET (2:43 AM GMT) while the was up 0.41%. For March, data from National Bureau of Statistics for the previous day showed that was at 49.5 and was at 48.4.

Hong Kong’s fell 0.76%.

Japan’s was down 0.43%, with data showing the at 14, and the at 9, for the first quarter of 2022.

South Korea’s was down 0.55%.

In Australia, the edged up 0.16%, with March’s at 55.7 and the at 57.7.

China’s worst COVID-19 outbreak since the start of the pandemic prompted the city of Shanghai to extend a lockdown and a retreat in U.S.-listed Chinese stocks is also dampening sentiment.

Oil prices are also being held down by the U.S. plans to allow around one million barrels per day out of their strategic petroleum reserve. Russia’s invasion of Ukraine on Feb. 24 has disrupted commodity supplies, ramping up prices for fuel and food. Russia intends to supply gas to European consumers, but it will demand that they pay Russian rubles.

The peace talks between Russia and Ukraine are expected to resume on Friday. The Russian government is also staying on top of its debt obligations so far, with JPMorgan Chase & Co. (NYSE:) processing a nearly $447 million payment for dollar debt due in 2030 on Thursday. The April 4th payment deadline will be met.

U.S. Treasuries declined, while the yield curve between 2-year and 10-year yields remained close to inverting. Combined with the Fed’s hawkish approach, concerns about an economic downturn are increasing. The on the first day of Japan’s new fiscal year, after its more-than-5% drop in the first quarter.

Investors are still weighing the impact of the war in Ukraine, Russia’s isolation, and the Fed’s tighter monetary policy on market volatility and further losses for stocks and bonds within the year. Only one key asset has shown significant growth in 2022 so far, which is the raw materials.

Downgraded growth outlooks in the U.S., Europe, and China are “something to watch very carefully,” Columbia Threadneedle Investments head of multi-asset strategy Anwiti Bahuguna told Bloomberg. “There are very few places to hide these days in the multi-asset space,” though commodities are a good spot because of inflation and geopolitics, she added.

Thursday’s U.S. data also showed that February’s personal consumption expenditures price index grew 6.4% , the most since 1982, and grew 0.6% . Later in the day, U.S. data including includes will be available.