Concurrently, oil prices dipped, exerting additional pressure on the broader dollar index across Asia. Trump's stern calls on OPEC, particularly Saudi Arabia, to boost production and slash prices are a boon for Asia's vast oil-dependent economies, alleviating some of their financial strain.

Japan's central bank has raised its key interest rate to about 0.5% from 0.25%, noting that inflation is holding at a desirable target level.

Equity benchmarks rose in Tokyo ahead of a key interest rate decision by the Bank of Japan later Friday, where a hike is expected. Stocks also rose in Sydney and Seoul. The S&P 500 advanced 0.5%, with the gauge topping the 6,

Japan's central bank raised interest rates to their highest since the 2008 global financial crisis and revised up its inflation forecasts.

Asian markets rose Friday after a record day on Wall Street in response to Donald Trump's tax-cut pledge, while the yen weakened slightly ahead of an expected interest rate hike by the Bank of Japan later in the day.

Chip giant Nvidia ( NVDA) was more than 11% lower in the first hour of US trading. Industry peer ASML ( ASML) lost 8%, while Arm ( ARM ), Broadcom ( AVGO ), and Micron Technology ( MU) also got hammered.

In the previous session, the Sensex declined 329.92 points, or 0.43 per cent to 76,190.46. Similarly, the Nifty50 ended the day 113.15 points, or 0.49 per cent, lower at 23,092.20

TSX futures followed sentiment lower even as investors looked ahead to an expected Bank of Canada rate cut on Wednesday. As The Globe’s Mark Rendell reports, the country is bracing for a trade war with the United States that could push our economy into a recession and raise consumer prices.

The GIFT Nifty on the NSE IX dropped by 153.50 points, or 0.66%, to 22,978.50, indicating that Dalal Street is set for a gap-down opening on Monday.

Robust investment flows, resilient Asian consumer demand and relentless central-bank purchases look set to offset any potential headwinds from a hawkish shift in U.S. monetary policy and with the macroeconomic outlook clouded by recession risks and policy uncertainty.

Indian benchmark equity indices BSE Sensex and Nifty50 declined at market open on Monday, amid mixed global and domestic cues.

In currencies, the dollar jumped 0.3 per cent against the Chinese yuan in offshore trading, and rallied 0.4 per cent versus the Aussie and 0.5 per cent versus the New Zealand dollar, with the antipodean currencies tending to act as more liquid proxies for China's currency due to close trade ties.