Global Markets React to Heated U.S. Presidential Debate

Asian equities and U.S. stock futures dipped following a contentious U.S. presidential debate between Vice President Kamala Harris and Donald Trump. The debate, covering issues like abortion, the economy, and immigration, left investors uneasy ahead of crucial U.S. inflation data and potential Federal Reserve policy changes.

Asian equities and U.S. stock futures saw a decline on Wednesday as markets reacted to a heated U.S. presidential debate between Vice President Kamala Harris and Republican Donald Trump. Investors were left on edge as the candidates clashed over issues such as abortion, the economy, and immigration.

The MSCI's broadest index of Asia-Pacific shares outside Japan decreased by 0.3%, while S&P 500 futures fell 0.5%. The dollar also weakened, with the yen rising over 1% to achieve an eight-month high. European stock markets were poised for a cautious start, with Eurostoxx 50 futures down 0.19% and FTSE futures slipping 0.17%.

Harris' late entry into the presidential race following President Joe Biden's withdrawal in July has narrowed the contest, prompting a reevaluation of trades that had anticipated a second Trump term. As investors focused on candidates' fiscal policies, pop star Taylor Swift's endorsement of Harris added a boost to her campaign.