• Asian equities are tepid after the negative trend on Wall Street.
• Wall Street witnessed a sell off in technology stocks ahead of key US inflation.
• Chinese stock indices fall but the property sector cheers positive news regarding troubled Country Garden.

Asian stock markets traded sideways with a negative bias on Wednesday following the negative trend seen on Wall Street due to a sell off in technology stocks ahead of key inflation data release from the United States (US).

Chinese stock indices dropped but real estate stocks experienced an increase following positive news regarding troubled property developer Country Garden.

The company received approval from its creditors to extend repayments on six onshore bonds by three years. This development likely boosted investor confidence in the real estate sector, leading to a rise in stock prices for Chinese real estate companies.

At the time of writing, China’s Shanghai is down by 0.83% to 3,110, the Shenzhen Component Index dropped to 10,443, down by 1.40%, Hong Kong’s Hang Seng fell to 18,010, South Korea’s Kospi is down 0.10%, Japan’s Nikkei declined by 0.15% and Taiwan's Weighted Index fell by 0.86%.

Sentiment toward China has largely remained negative due to a series of economic indicators for August that portrayed a weak picture of Asia's largest economy.

Additionally, the slow implementation of additional stimulus measures from Beijing has added to the concerns. These factors collectively contribute to a cautious outlook regarding China's economic performance and can impact investor sentiment in the region and globally.

Japan's stocks experienced a decline as reported by a Reuters poll indicating a decrease in business confidence among the country's largest firms in early September. This decline in confidence is attributed to growing concerns over a potential slowdown in China.

Investors await US Consumer Price Index (CPI) data to gain valuable insights into inflation trends in the US economy which can have a significant impact on Asian market sentiment.

US CPI is expected to exhibit a 0.5% month-on-month improvement from the previous month's reading of 0.2%. Moreover, the Core CPI figure is anticipated to remain steady at 0.2%.