Asian stocks ended mostly lower on Wednesday as concerns over rising coronavirus infections and the uncertainty surrounding the U.S. election result offset data from China indicating a steady recovery for the economy.
Chinese shares ended modestly lower despite data showing a pick-up in manufacturing and services activity in the country.
The benchmark Shanghai Composite index slid 6.31 points, or 0.20 percent, to 3,218.05, while Hong Kong's Hang Seng index climbed 183.52 points, or 0.79 percent, to 23,459.05.
The manufacturing sector in China continued to expand in September, albeit at a slower rate, the latest survey from Caixin revealed with a manufacturing PMI score of 53.0, down from 53.1 in August.
Output growth eased but remained marked, while there was a sharper increase in total new work as export sales rebounded.
China's purchasing managers' index for nonmanufacturing businesses rose for a seventh month in September, with the corresponding PMI rising to 55.9 from 55.2 in August.
Japanese shares tumbled as a combative, chaotic and contentious debate between U.S. President Donald Trump and former Vice President Joe Biden increased concerns about an indecisive election outcome.
The Nikkei average gave up 353.98 points, or 1.50 percent, to finish at 23,185.12, while the broader Topix index closed 2 percent lower at 1,625.49.
Banks underperformed, with Sumitomo Mitsui Financial, Mizuho Financial and Mitsubishi UFJ Financial Group falling 4-5 percent. Among the top gainers, NTT Docomo surged nearly 21 percent to extend gains from the previous session after its parent NTT launched a $40 billion bid to take the wireless carrier private.
In economic news, industrial production in Japan added a seasonally adjusted 1.7 percent sequentially month in August, a government report showed - exceeding expectations for an increase of 1.5 percent following the 8.7 percent gain in July.
On a yearly basis, industrial production dropped 13.3 percent - roughly in line with expectations following the 15.5 percent decline in the previous month.
Separate data showed that the total value of retail sales in Japan was up 4.6 percent on month in August, beating expectations for an increase of 1.0 percent following the downwardly revised 3.4 percent drop in July (originally -3.3 percent).
On a yearly basis, retail sales fell 1.9 percent - again exceeding expectations for a fall of 3.5 percent after slipping a downwardly revised 2.9 percent in the previous month (originally -28 percent).
Australian markets fell sharply, dragged down by banks and energy companies. The benchmark S&P/ASX 200 tumbled 136.20 points, or 2.29 percent, to 5,815.90 despite an improving Covid-19 containment situation in Australia's hotspot of Victoria State. The broader All Ordinaries index ended down 132.20 points, or 2.15 percent, at 6,009.30.
Woodside Petroleum, Origin Energy and Oil Search all slumped around 5 percent as oil prices extended losses amid rising production in Libya and worries about the pace of demand recovery.
Santos lost 3.9 percent as a state panel approved it's A$3.6 billion ($2.57 billion) Narrabri gas project.
The big four banks fell around 2 percent while mining heavyweights BHP and Rio Tinto fell 3.5 percent and 1.6 percent, respectively. Tech stocks halted a three-day winning streak, with Afterpay giving up 2.2 percent.
In economic releases, the latest reports on private sector credit and building permits painted a mostly positive picture of the economy.
Markets in Seoul were closed for a holiday. New Zealand shares fluctuated before finishing marginally higher after the ANZ Bank survey showed business sentiment in the country improved in September, thanks to the country's success in combating Covid-19.
Another report showed that the total number of building consents issued in New Zealand gained a seasonally adjusted 0.3 percent sequentially in August - matching expectations.
a2 Milk shares tumbled 3.2 percent to extend losses for the third day running after projecting a bleak earnings outlook.
U.S. stocks fell overnight to snap a three-day winning streak, though markets came off from their day's lows ahead of the presidential debate.
While lingering worries about the spread of coronavirus infections and cautious comments by a couple of Fed officials weighed on sentiment, a measure of U.S. consumer confidence rebounded by the most in 17 years in September, suggesting a U.S. economic recovery is still on track.
The Dow and the S&P 500 both dropped around half a percent, while the tech-heavy Nasdaq Composite slid 0.3 percent.
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