By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Wednesday morning, with investors digesting inflation data from China that indicated a build-up of inflationary pressure in the global economy. Now they await more data from the U.S.

China’s slid 1.18% by 9:23 PM ET (2:23 AM GMT) while the Shenzhen Component was down 0.61%. The consumer price index (CPI), grew by 0.7% in October and 1.5% in November. It grew 13.5% over the previous year.

The Chinese Communist Party’s Central Committee is also continuing its meeting, which runs to Nov. 11. It is anticipated that the meeting will pave way for a third unprecedented term for President Xi Jinping. Xi is also expected to meet U.S. President Joe Biden during a virtual summit the week following.

Hong Kong’s was down 0.50%.

Japan’s was down 0.36% and South Korea’s fell 0.82%. The index rose 0.08% in Australia.

A rally was halted by U.S. Treasuries of longer maturity, the yield on 30-years reaching its lowest level since July 2021. Due to the holiday, U.S. bonds markets will remain closed Wednesday.

Data-wise, the U.S. PPI increased 0.6% and 8.6% respectively. This amounted to 0.4% month over month, which will be available later in the day.

Global share prices could drop from recent near-record highs if central banks continue to tighten their monetary policies in an effort to curb inflation. James Bullard, President of the St. Louis Fed, noted that corporate pricing power is well-documented and has planned two interest rate increases in 2022.

However, San Francisco Fed President Mary Daly expects “eye-popping” inflation to subside in 2022 as supply-chain bottlenecks subside.

“Because we haven’t seen inflation for a while, people aren’t used to it,” MetLife (NYSE:) Investment Management chief market strategist Drew Matus told Bloomberg.

“What we should expect over the next half a year is, as people become more understanding of what the Fed might do, we are going to see more volatility,” he added.

China is still a major focus of investors Evergrande Group (HK). For three-dollar bonds, the developer will be responsible for coupon payments of $148.1 million before Wednesday’s end.