By Gina Lee

Investing.com – Asia Pacific stocks were up on Wednesday morning as easing lockdowns in China offer some hope for the economic outlook.

China’s inched up 0.03% by 10:32 PM ET (2:32 AM GMT) while the inched up 0.08%. Shanghai relaxed its lockdown June 1 raising hope that economic activity would pick up.

The earlier data released in the day showed that it recorded 48.1 for May. This data is better than what Investing.com had predicted at 48 and more than 46 in April.

Asia tech stocks could also benefit from some assistance, as Chinese stocks that are listed in the U.S. registered their first monthly gain after October.

Japan’s gained 0.66%, and In Australia, the  edged up 0.13%.

Hong Kong’s Index edged down 0.18%.

South Korean Market is Closed for Holidays

The investors continued to evaluate how aggressive tightening monetary policy will be in order to reduce inflation.

Treasuries fell, pushing 10-year yields to 2.86%. Investors increased their bets on U.S. Federal Reserve interest rates hikes. Swaps reveal that investors are almost ready to accept two half-point rate rises in July and June.

Inflation is driving consumers to the brink of bankruptcy. Investors worry that Fed tightening could lead to recession. In May, Eurozone consumer prices rose 8.1% year-on-year.

“It’s times like these when investors need a crystal ball,” LPL Financial (NASDAQ:) strategists Jeff Buchbinder and Ryan Detrick said in a note.

“We fully acknowledge how tough it is to see the bull case for stocks right now, and a retest of recent lows is certainly possible, but this week we lay out the bull case for the second half of the year. It starts with inflation.”

“There are heightened concerns around inflation and where central banks are likely to go trying to combat inflation,” Invesco Advisers chief global markets strategist Kristina Hooper told Bloomberg.

“This has gone from just an inflation scare to a growth scare. Uncertainty has grown,” Hooper added.

U.S. President J. on Tuesday, with inflation at its highest point in 40 years. Biden stressed that he respects the central bank’s independence but also affirmed a “laser focus on addressing inflation” ahead of the November midterms.

The Fe will start to shrink its $8.9 trillion debt and then release its $, in the later hours of today. Separate events will be held later in the afternoon by James Bullard, President of St. Louis Fed and John Williams, President of New York Fed.

Data-wise, Friday’s U.S. jobs report (including nonfarm payrolls) is due.