Asian shares are mostly higher while US futures and oil prices hold steady

Asian markets experienced a mostly positive trend on Monday, amid a slight decline in U.S. stocks following a weaker-than-expected report on the U.S. economy. The Nikkei 225 index in Tokyo rose 0.3% to 68,929.33, buoyed by Japan's government reporting slightly faster-than-expected economic growth in the April-June quarter. The economy expanded at a 1.1% annual pace, although private spending and investment remained flat, while exports slowed.

Hong Kong's Hang Seng index gained 1.6% to 25,521.99, while the Shanghai Composite index increased 0.8% to 3,960.19. The South Korean markets were closed for a holiday. Conversely, Australia's S&P/ASX 200 fell 0.4% to 9,076.90. Taiwan's Taiex rose 0.5%, and India's Sensex dropped 0.5%. On Friday, the S&P 500 declined 0.2% following a report indicating lower retail spending by U.S. shoppers, which might keep interest rates low and benefit investors.

However, the report also suggested a possible slowdown in economic growth amidst persistent high inflation. The Fed faces a challenge in addressing both a stagnant economy and high inflation simultaneously, making "stagflation" a worst-case scenario. The Dow Jones Industrial Average and Nasdaq composite both declined by 0.2% and 0.3%, respectively. Retail sector financial updates from major U.S. companies will be released throughout the week.