Asia Pacific stocks were mostly lower on Friday morning, with investors continuing to assess the risk of the new COVID-19 omicron variant. Yields on US Treasuries jumped after comments from the US Federal Reserve suggested the Fed could accelerate the pace of its asset-buying tapering.
China's Shanghai Composite was up 0.11% by 9:23 PM ET (2:23 AM GMT) while the Shenzhen Component was up 0.18%. The Caixin Services PMI, released earlier in the day, was 52.1 in November.
Hong Kong-listed developer, Kaisa Group Holdings Ltd. (HK:1638) also failed to win approval for its debt swap proposal.
Hong Kong's Hang Seng Index fell 1.27%.
Japan's Nikkei 225 fell 0.21% and South Korea's KOSPI fell 0.10%.
In Australia, the ASX 200 inched down 0.10%.
The Fed has raised the possibility of a faster reduction in asset purchases through officials including Fed Governor Randal Quarles, Atlanta Fed President Raphael Bostic and San Francisco Fed President Mary Daly. Fed Chair Jerome Powell took a similar view, with US Treasury Secretary Janet Yellen saying she understood the "why" behind the Fed's plans.
Some investors remain cautious, even as concerns about omicrons have eased on hopes that existing vaccines will remain effective or will be adjusted.
“The environment in the markets is changing,” Steven Wieting, chief investment strategist at Citigroup Private Bank, told Bloomberg.
“Monetary policy and fiscal policy are both losing their attraction. It does not mean a down market. But it won't be like the rebound, the strong bounce we've had for almost every asset over the past year. "
On the data front, 222,000 initial jobless claims were filed in the US during the week. Investors are now awaiting the latest US jobs report, including nonfarm payrolls, due later in the day.
Didi Global Inc. (NYSE: DIDI) will begin preparations to delist on the New York Stock Exchange and list on the Hong Kong Stock Exchange, the company said earlier in the day.
Shares of Grab Holdings Ltd., meanwhile, fell in its first day of trading on the NASDAQ board on Thursday. The listing follows the company's merger with Altimeter Growth Corp., which was approved on Tuesday and is the largest deal to date for a special-purpose acquisition.
