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Beijing's economic stimulus measures extended China's market rally into a second week, while Japan's choice of former Defense Minister Shigeru Ishiba as the country's next prime minister knocked down shares in Tokyo.

China: Stimulus shot and mortgage cuts boost markets

After closing out their best week since 2008, China's stocks continued to soar on the back of stimulus measures announced last week. The Shanghai Stock Exchange index posted a 8.06% gain Monday—its biggest jump since 2008—while Hong Kong's Hang Seng index rose 2.43%. China's central bank said on Sunday it would direct banks to cut rates on existing mortgages by Oct. 31, and several major cities eased home buying restrictions, giving property stocks a boost.

Japan: New prime minister's hawkish banking outlook hits shares

The Nikkei 225 dropped 4.8%, as investors reacted to the election of Shigeru Ishiba as prime minister. The new leader has been supportive of interest rate hikes, which are expected to strengthen the yen and make Japanese exports less competitive. Automakers Honda , Toyota and Mazda all dropped more than 7%.

Europe: Stellantis profit warning drags down shares

European stocks slid Monday morning, led by a 12% drop in Jeep and Ram-maker Stellantis, which issued a profit warning on weaker-than-expected sales “across most regions” and heightened Chinese competition. The index was down 0.67% at around 11 a.m. CET. The STOXX Europe 600 had set a record high Friday, aided by China's stimulus.

U.S. pre-market trading slips as markets await data

All three U.S. indexes slid marginally lower in pre-market trading Friday, as investors treaded water on the last day of the quarter. Eyes are on Nike's earnings, which come after the closing bell Tuesday, and the big September jobs report, which drops Friday.

The Dow, Nasdaq and S&P 500 rise

On Friday, the Dow rose 0.33%—hitting a new record—while the S&P 500 slid 0.13% and the tech-heavy Nasdaq dropped 0.39%, as investors prepared for Friday's economic data dump. Nvidia shares dropped 2.13% Friday and were down another 1.71% in pre-market trading Monday after Beijing warned Chinese AI companies to get their chips elsewhere.