Asian Stocks Cautious: China-Japan Tensions, Fed Decisions Weigh

• Asian stocks opened cautiously due to deteriorating China-Japan relations and upcoming central bank decisions.
• MSCI Asian equities fell 0.1%, with Australian shares and Japan's Nikkei 225 also declining.
• Japan's economy shrank in Q3, further impacted by cooling relations with China.
• Investors are cautious about the durability of the AI-driven rally and reassessing 2024 monetary outlook.
• The US Federal Reserve is expected to cut interest rates this week, but the long-term rate path remains uncertain.

Why It Matters: Central bank decisions and geopolitical tensions are creating global market uncertainty.