By Gina Lee

Investing.com – Asia Pacific stocks were mostly mixed on Wednesday morning, with investors weighing the impact of elevated inflation on the economic recovery from COVID-19 and await corporate earnings reports.

China’s was down 0.42% by 9:55 PM ET (1:55 AM GMT) while the inched up 0.04%. Later in the day, trade data including and will be available.

Thursday’s release of inflation data will include the price indexes and. As Sinic Holdings Group Co. Ltd., (HK:), became the latest to alert of an imminent default, there were increased concerns about Chinese developers being indebted.

Hong Kong’s was down 0.37%, after the start of trading was delayed by a typhoon.

Japan’s edged down 0.11% while South Korea’s rose 1.15%.

Australia saw 0.12% growth.

U.S. stocks were lower, as Apple Inc. (NASDAQ) shares fell. This is because the company plans to reduce its production targets for 2021 iPhone 13 due to chip shortages.

Investors anxiously wait for corporate earnings releases later in this week. Economic growth is slowing and inflation growing just as central banks begin asset tapering.

While the yield curve flattened, the indices fell further below 1.60%. The recent rally was halted by the global energy crisis.

“I think that some of these topics like inflation, the 10-year, COVID-19 variants, the future of corporate taxes, of course they are going to weigh on the market, but I still think that we are in an economic recovery,” Defiance ETFs chief investment officer and co-founder Sylvia Jablonski told Bloomberg.

Fed Bank of Atlanta President C said that inflationary pressures have been lasting longer than anticipated and therefore it would be inappropriate to call the increase transitory. Bostic’s colleague, Vice Chairman Richard Clarida, also said that the conditions required for the Fed to begin asset tapering have “all but been met.”

The Fed will release the and later that day, the U.S.

The International Monetary Fund warns of the danger of steep and sudden declines in home and equity values worldwide as central banks slow down asset tapering.