Asian markets mixed on Thursday on concerns surrounding inflation which may affect optimism for global recovery.
Shanghai advanced after reopening following the Lunar New Year holiday. Shares fell in Tokyo, Hong Kong and Seoul.
The Shanghai Composite index gained 0.6% to 3,678.11 and the S&P/ASX 200 was flat, at 6,885.90. Japan's Nikkei 225 lost 0.2% to 30,236.09, while the Hang Seng in Hong Kong shed 1.2% to 30,725.47. In South Korea, the Kospi gave up 1.5% to 3,086.66.
Vast amount of government spending has led to expectations of a surge in inflation and a spike in US Treasury yields to around one-year highs, sparking worries of higher borrowing costs down the line.
And it is these fears, along with warnings equities may have run ahead of themselves, that are playing on investors' minds.