Asian markets experienced a mostly downward trend on Monday, with U.S. futures showing modest gains following a lackluster performance on Wall Street last week. Tokyo’s Nikkei 225 index dropped 0.3% to 50,226.67, reflecting concerns over Japan’s economic contraction, which saw a 1.8% annual decline in the July-September quarter. The dollar strengthened against the yen, rising to 154.65 yen from 154.58 yen. Chinese markets also saw declines, with Hong Kong’s Hang Seng index falling 0.8% to 26,359.22 and the Shanghai Composite index slipping 0.4% to 3,973.31. Geopolitical tensions between China and Japan further dampened market sentiment, particularly following Japanese Prime Minister Sanae Takaichi’s remarks suggesting a potential military response to Chinese actions against Taiwan. China, which views Taiwan as part of its territory, has warned its citizens against traveling to or studying in Japan. In South Korea, the Kospi index rose 1.7% to 4,078.39, driven by gains in tech-related shares, particularly computer chip makers collaborating with Nvidia on artificial intelligence projects. Australia’s S&P/ASX 200 edged down less than 0.1% to 8,628.60, while Taiwan’s Taiex and India’s Sensex posted modest gains. U.S. futures indicated a positive outlook, with the S&P 500 up 0.5% and the Dow Jones Industrial Average slightly higher. Despite recent volatility, the S&P 500 remains close to its record high, with investors closely watching Nvidia’s upcoming earnings report for signs of sustained growth. Meanwhile, questions linger over the Federal Reserve’s potential interest rate cuts, as inflation remains above the 2% target. Bitcoin saw a slight increase, while oil prices dipped in early trading.