Asian markets are anticipated to have a cautious beginning to the week as traders weigh geopolitical risks against indications that the upcoming round of trade tariffs proposed by Donald Trump might be less severe than initially expected. Equity futures in Australia, Japan, and mainland China are pointing towards potential losses at the start of the week, while Hong Kong contracts suggest gains. US futures showed an early increase in Asia trading, following a slight rise in stocks on Friday due to a major options expiry. The dollar remained stable against major currencies as markets prepared for potential uncertainties.

Traders are currently facing various challenges, including political turmoil in Turkey and speculations that the next set of US tariffs scheduled for April 2 might be more focused compared to the broader global approach previously considered by Trump. The market sentiment is cautious, with concerns about potential disruptions and uncertainties looming. The S&P 500 saw a modest increase on Friday after a significant options expiration event that added volatility to trading. The 10-year Treasuries yield inched up, and the dollar strengthened for the third consecutive day, reflecting apprehensions surrounding US trade policies.

Chinese Premier Li Qiang mentioned readiness for unexpected shocks from the impending tariff announcement, while Australia's Treasurer Jim Chalmers cautioned about the significant global economic impact of the US administration's policies. Market analysts foresee potential support for the US dollar this week from leaks and statements regarding the new tariff regime. There is a belief that market participants have not fully priced in the negative impact on the global economy expected from the upcoming tariff announcements.