By Gina Lee

Investing.com – Asia Pacific stocks were down on Tuesday morning as investors are concerned that the interest rate hikes might impact economic growth.

Japan’s fell 1.14% by 10:10 PM ET (2:10 AM GMT), and South Korea’s fell 1.40%.

Australia saw a drop of 1.47%.

Hong Kong’s tumbled 2.52%.

China’s inched down 0.01% while the was down 1.07%. China has reaffirmed its zero-covid policy and Shanghai is tightening their lockdown.

According to ANZ analysts speaking with Reuters, the idea of a benign and gentle tightening process has disappeared.

“The fact is that U.S. Federal Reserve has no ability to control supply in the short term. As long as key indicators, such as labor force participation, stay low, and Chinese exports are slow, then the risk of inflation and consequently interest rates lies to the upside,” ANZ declared.

The central banks have increased the efforts to combat rising inflation.

In the largest interest rate hike since 2000, the U.S. central banks raised its rate to 1%. The Bank of England raised its interest rate by 1% on Thursday as it announced its policy decision. This is the largest increase in rates since 2009.

U.S. stocks fell overnight as investors worried about an economic slowdown.

On the data front investors are currently awaiting on Wednesday as well as on Thursday the and.

Loretta Mester from Cleveland Fed, Raphael Bostic of Atlanta Fed, John Williams, President of the Fed in New York, and Christopher Waller, Fed Governor, will all speak later today.