Asian equities and US stock futures fell on Wednesday as the dollar weakened following a heated US presidential debate between Vice President Kamala Harris and Donald Trump, unsettling investors. The debate, focusing on key issues like the economy and immigration, triggered market volatility ahead of US inflation data expected to shape Federal Reserve policy. The MSCI Asia-Pacific index dropped 0.3 per cent, S&P 500 futures fell 0.5 per cent, and the yen surged over 1 per cent, reaching eight-month highs. European markets looked set for a weak opening, with Eurostoxx 50 futures down 0.19 per cent and FTSE futures slipping 0.17 per cent. Harris' entry into the race following President Biden's July withdrawal shifted market sentiment. Betting markets moved in her favour post-debate, supported by an endorsement from pop star Taylor Swift. The dollar index fell 0.3 per cent, and US Treasury yields eased slightly. Japan's Nikkei dropped 2 per cent, while Chinese stocks continued their decline. Investors now focus on the US Labour Department's inflation report, with markets pricing a 65 per cent chance of a 25 basis-point Fed rate cut next week. Oil prices steadied after a recent 3 per cent drop, with Brent crude rising 0.43 per cent to $69.49 per barrel. Attribution: Reuters Subediting: M. S. Salama
