Consumer prices on the mainland slipped 0.4 per cent in August from a year earlier, compared with estimates of a 0.2 per cent decrease.

The probability of a 25-basis-point reduction by the Fed this month jumps to 89.4 per cent, according to the CME Group.

China's August consumer price index fell 0.4% year over year, missing expectations of a 0.2% drop by economists polled by Reuters.