Investing.com– Most Asian shares fell on Wednesday as uncertainty over the tight U.S. presidential race, while trade worries pushed Chinese markets to 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 heated debate that cast more doubt on the 2024 presidential race with less than two months left to vote.

Wall Street indexes posted some gains Tuesday as technology shares rebounded from recent losses. But U.S. stocks, like global markets, have seen substantial declines over the past week.

Attention is also focused on US inflation data due later in the day, which could have an impact on expectations for US interest rates in the coming months.

Chinese stocks at 7-month low amid US unrest

China’s stock market and indexes fell 0.2% and 0.8% respectively, extending losses from the previous session and hitting lows last seen in early February.

Hong Kong’s index fell 1.5% to near its lowest level in a month after U.S. policymakers passed a law to move the region’s trading offices out of the U.S. territory.

Sentiment toward China has been hurt by progress on a U.S. bill that would restrict business with Chinese biotech companies. The House of Representatives voted almost unanimously in favor of the bill Monday.

Beijing has criticized the bill, which still needs to pass the Senate. But the bill is another potential headwind for U.S.-China relations, which are already strained by the recent imposition of steep novel trade tariffs on some Chinese industries.

Sentiment toward China also worsened after Trump reiterated plans to impose higher trade tariffs on the country.

Asian stocks fall on US inflation

Asian stock markets fell as a rebound from last week’s losses proved fleeting.

The Japanese index fell 0.7%, while the Korean index fell 0.9%. The South Korean index fell 0.2% and the Australian index fell 0.2%.

Indian index futures were pointing to a slightly weaker open and the index should fall in line with its Asian peers.

Markets were on edge ahead of a U.S. inflation reading due on Wednesday, widely expected to weigh on the outlook for interest rates. The reading should show inflation fell slightly in August.

The CPI data was released just a week before the central bank was expected to cut interest rates by at least 25 basis points.

Declining expectations for a 50 basis point rate cut sent shockwaves through stock markets last week amid some signs of resilience in the U.S. economy.