Investing.com– Most Asian stocks fell on Wednesday amid uncertainty over what is shaping up to be a hotly-contested U.S. presidential race, while concerns over trade saw Chinese markets hit a seven-month low.
Regional markets tracked losses in U.S. stock index futures, which fell as Vice President Kamala Harris and former President Donald Trump faced off in a fiery debate. The debate cast more doubts over the 2024 presidential race, with less than two months left to the ballot.
Wall Street indexes clocked some gains on Tuesday as technology stocks rebounded from recent losses. But U.S. stocks, along with global markets, were nursing steep losses over the past week.
Focus is also on a U.S. inflation reading due later in the day, which is likely to factor into expectations for U.S. interest rates in the coming months.
Chinese stocks at 7-mth low amid US jitters
China’s and indexes fell 0.2% and 0.8%, respectively, extending losses from the prior session and trading at lows last seen in early-February.
Hong Kong’s index slid 1.4% and was also close to a one-month low.
Sentiment towards China was battered by progress in a U.S. bill that plans to restrict business with Chinese biotechnology companies. The House of Representatives almost unanimously voted in favor of the bill on Monday.
Beijing criticized the bill, which still needs to pass through the Senate. But the bill presents another potential headwind for U.S.-China relations, which are already strained by the recent imposition of new, steep trade tariffs on certain Chinese industries.
Sentiment towards China was also rattled by Trump reiterating plans to impose increased trade tariffs against the country.
Asian stocks fall with US inflation on tap
Broader Asian stocks retreated as a rebound from last week’s losses proved to be fleeting.
Japan’s index fell 0.7%, while the fell 0.9%. South Korea’s fell 0.2%, while Australia’s fell 0.2%.
Futures for India’s index pointed to a mildly weaker open, with the index set to fall in tandem with its Asian peers.
Markets were on edge before a U.S. inflation reading due later on Wednesday, which is widely expected to factor into the outlook for interest rates. The reading is expected to show inflation eased slightly in August.
The CPI data comes just a week before a , where the central bank is expected to cut interest rates by at least 25 basis points.
Diminishing expectations for a 50 bps cut had rattled stock markets last week, amid some signs of resilience in the U.S. economy.
