By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Thursday morning, over concerns that the economic recovery from COVID-19 will be hit as increased inflation forces central banks to tighten their monetary policies.

Japan’s fell 0.88% by 10:25 PM ET (2:25 AM GMT), with the handing down its latest policy decision later in the day.

Additionally, the U.S. government will issue its policy decision and release data later that day, including third quarter.

South Korea’s inched down 0.04%, with Samsung Electronics (OTC:) Co. Ltd. (KS:) third-quarter profit.

In Australia, the was down 0.46% and Hong Kong’s was down 0.43%.

China’s tumbled 1.03% and the edged down 0.14%.

Both the 10-year and 30-year U.S. Treasuries rallied. The sovereign-yield curves continued to flatten over the week. This is due to growing growth worries and signs that inflationary pressures are pushing central banks towards tapering. In Asia Pacific, Australia’s monetary authority decided against defending the bond-yield target, causing the April 2024 security to slide.

Aluminum, iron ore and other commodities dropped. In China officials are planning to limit a crucial coal price. China Evergrande Group’s next coupon payment deadline on Friday is also fast approaching.

The global shares have reached all-time heights and better-than expected corporate earnings are proving to be a major boost. However, this rally’s sustainability is dependent on investor confidence that policymakers can curb inflation while sustaining the economic recovery from COVID-19.

There seems to be “less confidence that the U.S. Federal Reserve will be able to thread the needle and neither end up behind the curve with its taper timeline/gradual hikes nor ahead of the curve if it reacts too quickly,” Credit Suisse Jonathan Cohn was the head of rates trading strategy Jonathan Cohn mentioned in a note.

Rising numbers of COVID-19 cases in countries, including an “unusual surge” in Singapore, also continue to be of concern to investors.

Finance and health ministers from the Group of 2o0 will meet on Friday, ahead of the leaders’ summit that will take place over the weekend.

The bitcoin price moved even more k away from $67,000 peak reached the previous week. However, it remains below $60,000