Asian equities edged lower Monday, with Japanese shares under pressure after data showed the economy shrank sharply in the third quarter, while caution ahead of Nvidia’s results kept a lid on risk appetite. U.S. equity futures firmed, hinting at a potential rebound on Wall Street after a choppy start to November.

Japan: GDP shock tempers rate-hike bets

The Nikkei 225 and TOPIX fell ~0.6% after Japan’s GDP contracted 1.8% q/q in Q3 (better than the -2.5% consensus). Weak private consumption and softer exports—partly blamed on higher U.S. tariffs—dragged activity, though resilient capex offered a cushion. The print cooled expectations for a December BoJ hike, limiting equity losses; some houses still see scope for a January move if wage/inflation dynamics hold.

China/HK: Diplomatic chill weighs; tourism hit

Mainland benchmarks (CSI 300 -0.7%, Shanghai Comp -0.6%) and Hang Seng (-0.5%) slipped as a diplomatic spat intensified after comments from Japan’s prime minister on Taiwan. Beijing’s weekend advisory against travel to Japan pressured Japan-exposed tourism names.

Nvidia watch keeps tech cautious; Korea rebounds

Regionally, tech stayed cautious ahead of NVIDIA (NVDA) earnings, a sentiment already bruised by chatter around lofty AI valuations and high-profile stake sales/shorts disclosed by notable investors. Bucking the trend, South Korea’s KOSPI jumped 1.7%, led by SK Hynix and Samsung Electronics, amid reports of sharply lower chip inventories—seen as a bullish signal for pricing—and fresh Samsung capex pledges for domestic fab capacity.

Elsewhere in Asia

• Australia ASX 200: -0.3%, with broad-based softness.
• Singapore STI: -0.1%.
• India Nifty 50: +0.3%, edging toward the 26,000 milestone.

U.S. lead

Despite a cautious regional tone, S&P 500 futures rose 0.4% and Nasdaq 100 futures gained up to 0.7%, as traders eyed a stateside bounce even while trimming odds of a December Fed cut after last week’s hawkish pushback from officials.

Bottom line: Soft Japan GDP and Nvidia event risk kept Asia defensive, but selective strength in Korean semis underscores that cycle-specific tailwinds can still punch through a macro-cautious tape.