Asia Markets Waver Amid Middle East Tensions and Chinese Stimulus

Asia share markets showed caution with concerns over Middle East conflicts affecting sentiment, despite China's new stimulus measures. The Nikkei fell due to worries about Japan's economic policies, while Wall Street had a strong week. Key U.S. economic data is expected to influence future Federal Reserve decisions.

Asia share markets turned hesitant on Monday as strife in the Middle East offset more stimulus measures in China, while the Nikkei dived on concerns Japan's new prime minister favored normalizing interest rates. The rush of stimulus helped outweigh a poor manufacturing survey and lift the blue-chip CSI300 another 3.0%, having already jumped 16% last week. The Shanghai Composite climbed 4.4%, on top of last week's 13% rally.

Continued Israeli strikes across Lebanon added geopolitical uncertainty to the mix, though oil prices were still restrained by the risk of increased supply. The week is packed with major U.S. economic data including a payrolls report that could decide whether the Federal Reserve delivers another outsized rate cut in November.

The Nikkei led the early action with a dive of 4.1% as investors anxiously waited for more direction from new Prime Minister Shigeru Ishiba, who has been critical of the Bank of Japan's easy policies in the past. However, he sounded more conciliatory over the weekend saying monetary policy 'must remain accommodative' given the state of the economy.

(With inputs from agencies.)