(fxcue news) - Asian stocks declined on Wednesday as investors watched the latest updates on the Trump-Harris presidential debate and braced for U.S. consumer price inflation data that could influence the Federal Reserve's policy moves next week. Analysts expect the headline CPI to have risen 0.2 percent month-on-month in August, unchanged from the previous month. The dollar dropped while gold gained ground due to dovish Fed expectations. Current expectations lean towards a 25-bps cut, but that won't be enough to get ahead of the economy. Oil prices rose more than 1 percent in Asian trading, after having dropped to near three years low in the New York session on concerns over a weak demand outlook. Chinese markets hit a seven-month low as the U.S. House of Representatives approved BIOSECURE Act, restricting U.S. ties with specific Chinese biotech companies to safeguard national security. The benchmark Shanghai Composite index fell 0.82 percent to 2,721.80. Hong Kong's Hang Seng index settled 0.73 percent lower at 17,108.71, after having fallen to a near one-month low earlier. Japanese markets tumbled while the yen surged to an eight-month high after Bank of Japan board member Junko Nakagawa signaled readiness to raise rates further if the economy and inflation move in line with forecasts. The Nikkei average fell 1.49 percent to 35,619.77 while the broader Topix index closed 1.78 percent lower at 2,530.67. Automakers Honda Motor, Toyota, Nissan and Mitsubishi Motors slumped 3-4 percent. Seoul stocks ended lower for a seventh consecutive session due to selling by foreign investors. The Kospi average dropped 0.4 percent to 2,513.37, dragged down by financials and tech stocks. Samsung Electronics gave up 2 percent, KB Financial Group plummeted 6 percent and Shinhan Financial Group plunged 6.2 percent. Australian markets ended modestly lower after Reserve Bank of Australia Assistant Governor Sarah Hunter said the labor market is still tight relative to full employment. The benchmark S&P/ASX 200 slipped 0.30 percent to 7,987.90, with banks and energy stocks leading losses. The broader All Ordinaries index settled 0.27 percent lower at 8,195.20. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally lower at 12,632.35. U.S. stocks fluctuated before closing mixed overnight ahead of the Harris-Trump debate and August's CPI inflation report. The tech-heavy Nasdaq Composite gained 0.8 percent and the S&P 500 added half a percent to score back-to-back gains. The Dow dipped 0.2 percent, pressured by a fall in oil prices to near three-year lows and a slew of cautious comments from American bank executives.