Asian Markets Slide Amid U.S. Economic Concerns

Asian share markets dropped due to worries about a U.S. economic slowdown, following a rough week on Wall Street. Despite some rebound in U.S. stock futures, investor sentiment was impacted by mixed data and uncertainty over Federal Reserve's rate cuts. Japan's Nikkei and MSCI's Asia-Pacific index fell notably.

Asian share markets declined on Monday, spurred by concerns over a potential U.S. economic downturn which impacted Wall Street. While U.S. stock futures rallied slightly, bond yields rebounded from their lows, indicating market volatility.

China's consumer price index data indicated subdued domestic demand, with a 1.8% drop in producer prices for August. Japan's Nikkei experienced significant losses in tech stocks, dropping 2.4% following a nearly 6% decline the previous week.

The MSCI's broad index of Asia-Pacific shares outside Japan slipped 1.2%, and South Korea's market fell 1.3%. However, S&P 500 futures and Nasdaq futures edged up 0.2%, and EUROSTOXX 50 futures added 0.3%.

Market uncertainties persisted as Fed fund futures dipped, influenced by mixed U.S. payroll data and potential Federal Reserve rate cuts. Despite a 33% market-implied chance for a 50 basis point cut, economists like Barclays' Christian Keller see a more moderate reduction path.

The debate between Kamala Harris and Donald Trump on Tuesday and the European Central Bank's impending decision also influenced markets. Bond yields experienced minor profit-taking, and commodity prices showed mixed reactions, with gold slightly restrained and oil prices recovering from a recent slump.

(With inputs from agencies.)