By Gina Lee

Investing.com – Asia Pacific stocks were down on Thursday morning, with U.S. Treasuries trimming a fall. The U.S. Federal Reserve Chairman announced an interest rate increase as early as March 2022. Investors continue to take this in, with many more coming.

Japan’s fell 2.47% by 9:20 PM ET (2:20 AM GMT). South Korea’s slid 2.94%, with Samsung Electronics (OTC:) Co. Ltd. (KS:) missing profit estimates.

The Australian consumer price index fell by 2.75% after holidays. Across the Tasman Sea, New Zealand’s consumer price index grew 1.4% and 5.9% in the fourth quarter of 2021.

Hong Kong’s fell 2.11%.

China’s was down 0.69% and the was down 0.29%.

U.S. stocks lost gains on Wednesday, but are moving up. This benchmark stood at 1.85%. The gap between 5- and 30-year yields was nearly the narrowest since the beginning of 2019.

Powell’s comments accompanied the Fed’s latest policy decision, handed down on Wednesday. Although he did not provide a specific timetable, Powell emphasized the central bank’s determination to curb high inflation, with the Fed likely to commence asset tapering after hiking borrowing costs.

Stocks and bonds were sold off in the 2022 period due to the prospect of tighter Fed money policy. Now investors will have to adapt to withdrawal of COVID-19-era stimulus by central banks, while also considering the potential economic recovery risks.

The Fed meeting “played out more hawkishly than we expected,” Standard Chartered (OTC:) Bank global head of G-10 FX research Steven Englander said in a note.

“The statement was largely as anticipated, but Powell emphasized upside risks to inflation, pointing to a steady pace of policy withdrawal.”

Later in the day, it will issue its policy decision. Investors are also awaiting U.S. data on GDP and core durable good orders due the same day.

Other corporate news: Tesla Inc. (NASDAQ) profit beats estimates. However, shares took a wild ride in extended trading following the announcement that supply-chain problems will restrict output. Intel Corp .Pershing Square Capital Management (NASDAQ) shares dropped on disappointing profit predictions, and Netflix Inc. (NASDAQ)’s top 20 shareholders is Pershing Square Capital Management, Bill Ackman tweeted Wednesday.

The U.S. sent a response in writing to Russia on tensions regarding Ukraine. U.S. Secretary of State Antony Blinken said the response lays out “a serious diplomatic path forward” even as it rejects some of Russia’s key demands.