By Gina Lee

Investing.com – Asia Pacific stocks were down on Wednesday morning, as investors await the , alongside other U.S. data. Investors also consider the possibility that central banks might tighten their monetary policies to reduce inflation.

Japan’s fell 1.07% by 9:36 PM ET (2:36 AM GMT), with markets re-opening after a holiday. Data released earlier in the day showed that November’s was 54.2. Data also includes the.

South Korea’s was down 0.37% and in Australia, the inched down 0.09%.

Hong Kong’s edged down 0.20%.

China’s edged down 0.19% and the inched down 0.10%.

It was at 1.65% because of inflation fears being dampened by the Fed’s asset tapering program. Expectations remain high.

Due to U.S. bond and equity markets being closed for the holiday on Thursday, data, including minutes of the Fed Meeting, will be available later in the day.

In regards to the Fed minutes, the key detail that investors should look out for is “discussions around the criteria for quicker asset tapering,” Commonwealth Bank of Australia strategist Carol Kong said in a note.

The note said that inflation trends suggest the Fed should tighten its belt sooner than it is currently signaled.

As it made earlier today’s policy announcement, the RBNZ raised its interest rates to 0.755%. RBNZ’s attempt to control inflationary pressures was less successful than it expected. It also forecasted benchmark borrowing costs at 2% before the year ends 2022.

Investors now wonder if inflation will cause other central banks to raise interest rates faster than they planned, as it is currently at high levels.

“For quite a while now that extra liquidity hasn’t been going into the economy, it has been going more into the markets. The Fed is going to start pulling back on that,” Miller Tabak + Co. chief market strategist Matt Maley told Bloomberg.

It will publish its own policy announcement on Thursday. Andrew Bailey, Governor of the Bank of England will be speaking at an event hosted by the Cambridge Union across the Atlantic.