Tuesday saw gains in most Asian equities, following Wall Street's overnight rally, as investors awaited inflation data to provide more hints about potential interest rate reductions.

Following the passage of a measure by US lawmakers that attempted to impose more limitations on a number of Chinese biotechnology businesses, the Chinese market fell behind its regional counterparts. Over the last week, a slew of mediocre economic indicators also hurt Chinese markets.

Wall Street's overnight advances spurred other Asian markets, as American equities somewhat recovered from their brutal losses from the previous week. This week's main focus will be on important consumer price index inflation data, which will probably have an impact on the forecast for interest rates.

Hong Kong's Hang Seng index dropped 0.3% to a three-week low, while China's CSI 300 and Shanghai Composite sank 0.3% apiece to a seven-month low.

A bill to limit federal contracts and dealings with Chinese biotech companies was passed by the U.S. House of Representatives.

The Biosecure Act, which includes the measure that still has to pass the Senate, aims to restrict access to Americans' genetic and medical data, which may pose a danger to national security.

However, the law poses a significant obstacle for Chinese biotech companies, many of which have significant exposure to the U.S.

Other Asian markets rose in tandem with their Wall Street counterparts, with Wednesday's CPI inflation data attracting much attention. The Federal Reserve is predicted to lower interest rates by 25 basis points at its meeting next week, which is just one week away from this reading.

Japan's TOPIX and Nikkei 225 indices increased by 0.8% and 0.2%, respectively, following a nearly one-month low last week.

Despite statistics indicating a decline in consumer sentiment in early September, Australia's ASX 200 saw a 0.6% increase.

(Sources: investing.com, reuters.com)