By Gina Lee

Investing.com – Asia Pacific stocks were mostly up on Wednesday morning, extending a rally in step with U.S. counterparts. Treasuries remained largely flat as investors continue to process the hawkish comments by Jerome Powell (US Federal Reserve Chairman).

Japan’s rose 0.71% by 10:39 PM ET (2:39 AM GMT). It was shown that GDP declined by 1% in 2022’s first quarter and fell 0.2% thereafter.

South Korea’s inched up 0.10%.

The Australian wage index rose 2.4% to 0.7%, while the price index for wages rose by 0.96%.

Hong Kong’s fell 0.75%. China’s fell 0.69% while the inched up 0.02%.

Even with the poor GDP data, Japanese shares rose more than 1%. An Asian stock index rose for the fourth day straight, the longest such streak since February 2022. U.S. futures also edged up after the and added at least 2% thanks to the previous session’s risk rebound.

A gauge of U.S.-listed Chinese shares soared more than 5% on Tuesday after Vice Premier Liu He gave a public show of support for digital-platform companies after a symposium with the heads of some of China’s largest private firms.

U.S. Treasury yields remained higher, while Australian bonds fell after Powell said the Fed “won’t hesitate” to tighten policy beyond neutral to curb inflation. He added that the Fed will hike interest rates until there is “clear and convincing” evidence that inflation is in retreat.

The comments, made at a Wall Street Journal live event, were some of Powell’s most hawkish to date.

The Philadelphia Fed President Patrick Harker is expected to comment on the situation. Investors will also be awaiting comments later in today from G-7 central banks and finance ministers.

“This is one of the most challenging markets I have been in in my career,” MFS Investment Management fixed income portfolio manager Henry Peabody told Bloomberg.

“I suspect at a certain point of time we’re going to have the liquidity of the markets challenged. They really haven’t been thus far.”

Investor sentiment was buoyed by strong U.S. retail sales, factory data, and strong U.S. retail sales. However, concerns about this so-called bull-market bounce will continue to grow as the monetary setting tightens, the war in Ukraine continues, and China struggles with COVID-19.

“We’ll have this kind of volatility as people jump in and look at opportunities to buy as markets decline,” Cope Corrales director of investments Shana Sissel told Bloomberg, adding that the Fed is going to struggle to achieve a soft economic landing, she added.

The U.S. is also set to fully block Russia’s ability to pay U.S. bondholders after a deadline expires in the following week, which could bring Russia closer to the brink of default.

Elsewhere, the and consumer price indexes are due later in the day, with China’s following on Friday.