By Gina Lee

Investing.com – Asia Pacific stocks were mostly up on Tuesday morning, even as investors continue to evaluate the economic outlook thanks to elevated food and fuel costs, central banks’ tightening monetary policies, and China’s COVID-19 lockdowns.

Japan’s gained 0.44% by 10:08 PM ET (2:08 AM GMT) and South Korea’s rose 0.74%.

In Australia, the was up 0.29% and Hong Kong’s jumped 1.85%.

China’s edged down 0.17% while the was up 0.32%. According to reports, Shanghai experienced three consecutive days without any community transmission. This could allow the city to ease its strenuous lockdown.

U.S., European and Asian futures are back in an uptrend, even though Wall Street shares closed lower last session and Treasury yields edged upward. As the stabilitycoin sector is experiencing volatility, bitcoin was close to the $30,000 threshold in cryptocurrencies.

The commodity costs continue to rise, with crude oil hovering around $114 and an index for agricultural prices at a record high.

Meanwhile, Monday’s U.S. data showed contracted for the second time in three months to -11.6 in May 2022. Investors also continue digesting the impact of China’s COVID-19 lockdowns on its economic activity data released on Monday.

Investors now await the and consumer price indexes, due on Wednesday, and China’s , due on Friday.

Both the U.S. as well China’s disappointing numbers are leading to fears about a global economic downturn. Inflation shows no signs of slowing down. These disappointing data have prompted the U.S. Federal Reserve to tighten its monetary policies.

“With inflation showing little sign of letting up, the Fed is under pressure to accelerate the pace of tightening,” Morgan Stanley (NYSE: Wealth Management chief investor officer Lisa Shalett stated in a note

Taken together with the impact of the war in Ukraine, perpetrated by Russia’s invasion on Feb. 24, and China’s COVID-19 outbreak, this “suggests global growth may be decelerating more quickly than forecast,” the note added.

John Williams, New York Fed President, dismissed concerns about financial market liquidity. On Monday, he said that such volatility was normal given the uncertainty investors face over global events as well as shifting U.S. monetary policy.

Jerome Powell (Fed Chairman) and other Fed policymakers will talk later in the afternoon, followed by Patrick Harker (Philadelphia Fed President) a few days later.

Asia Pacific’s central bank released its minutes from the latest policy meeting. On Wednesday, the G-7 central bankers and finance ministers are due to meet.

Meanwhile, Twitter Inc . (NYSE:). Shares fell Monday after Tesla Inc Tesla Inc. CEO Elon Musk suggested that he might seek to negotiate a renegotiated takeover. A viable deal at a lower price would not be “out of the question,” according to Musk.