<h1>Financial Markets Navigate Uncertain Terrain as Trade Tensions and Fed Policy Spark Investor Caution</h1> Asian financial markets experienced mixed performance following Wall Street's rally. Economic indicators suggested potential Federal Reserve interest rate adjustments amid trade tensions. Japan's economy contracted unexpectedly, with falling exports and flat consumer spending. Stock indices in Hong Kong and Shanghai declined, while Alibaba's stock tumbled after missing financial forecasts. US markets showed modest gains, with ongoing uncertainty about economic impacts of trade policies and potential recession risks.