Rising Tensions and Tech Woes: A Mixed Week in Global Markets

Asia's stock markets slipped this week amid heightened tensions between China and Japan and potential shifts in U.S. monetary policy. Investors focused on upcoming corporate earnings, with Nvidia's results in the spotlight. A mixed response is anticipated due to dated economic data and rate uncertainties.

Asia's stock markets experienced downturns on Monday, exacerbated by escalating tensions between China and Japan, which negatively impacted Tokyo's shares. Investors are now gearing up for a week dominated by catch-up data and earnings reports, including a pivotal release from Nvidia post-market on Wednesday. The company's results are expected to heavily influence investor sentiment, especially as Thursday's U.S. labor market data may be less relevant.

S&P 500 and Nasdaq 100 futures showed moderate gains in Asia, rising by 0.4% and 0.7% respectively, while European and FTSE futures declined slightly. The likelihood of a U.S. interest rate cut in December has dwindled following cautious remarks from policymakers, which is adding pressure on technology stocks that are highly sensitive to interest rate changes.

In addition to market fluctuations, Japan's Nikkei dropped 0.2% as tourism and retail sectors faced heavy losses after China advised caution about visiting Japan. Investors are also eyeing Japan's economic contraction, the first in six quarters due to U.S. tariffs. Meanwhile, Australia's market stayed flat after BHP was found liable for a dam collapse.

(With inputs from agencies.)