By Gina Lee

Investing.com – Asia Pacific stocks were up on Thursday morning, with investors digesting the .

Japan’s rose 0.97% by 10:12 PM ET (2:12 AM GMT), with markets re-opening after a holiday.

South Korea’s gained 0.72% and in Australia, the edged up 0.18%.

Hong Kong’s was up 0.33%.

China’s gained 0.51% while the inched was up 0.62%.

U.S. stocks rose with record highs for the,,..

On Wednesday, Fed Chairman Jerome Powell indicated the start of asset tapering. Although Fed Chairman Jerome Powell indicated that interest rate hikes will not come anytime soon, he added, “we think we can be patient. We will respond if necessary.

The rally was stopped by U.S. Treasury yields at longer ends, but the yield curve is steeper now than it was before the Fed’s decision.

As inflation worries remain, the indicators of inflation in bond markets are rising. Investors largely have maintained their faith in the interest rate rise timelines. The first hike is likely to occur in July 2022. There will be 55 basis point increases before the year ends 2022.

Monetary policy can “send a message saying rates do need to rise but in a controlled way and not as aggressively as some market pricing suggests,” AXA Investment Managers chief investment officer for core investments Chris Iggo said in a note.

“If they can do that, the risk of a market rout in bonds and equities will be reduced.”

European Central Bank President Christine Lagarde said the monetary authority is “very unlikely” to hike rates in 2022, with investors split as to whether the will hike interest rates when it hands down its policy decision later in the day.

On Wednesday, the U.S. Treasury announced that it had reduced its quarterly sales of long-term debt for the first time in over five years. This is a result of decreasing borrowing requirements as COVID-19-era expenditure also drops.

Investors are now awaiting the U.S. latest jobs report on Friday.