The skyline of Tokyo as seen from the Bunkyo Civic Center Observation Deck captured the city on August 14, 2024. In an image by Philip Fong for AFP via Getty Images, the Asia-Pacific market landscape appeared gloomy as the new week began. Hit hardest was Japan's Nikkei 225, which mirrored the region's losses following disappointing U.S. job figures on Friday. The U.S. nonfarm payroll data revealed an increase of only 142,000 jobs, falling short of economists' expectations who had forecasted a 161,000 gain according to a Dow Jones poll. However, the unemployment rate slightly decreased to 4.2%, matching predictions.

Investors across Asia are digesting Japan's updated GDP for Q2 and the upcoming consumer price index report from China scheduled for Monday. Japan's Q2 GDP showed a 2.9% annualized growth rate, missing the anticipated 3.2% and below the previous estimate of 3.1% gathered by Reuters. Meanwhile, China's inflation rate is projected to rise by 0.7% year-on-year this August, compared to a 0.5% increase in July. Nikkei 225 dropped by 3%, and the broader Topix dipped by 2.79%. South Korea's Kospi index fell by 1.99%, with the Kosdaq down by 1.72%. Australia's S&P/ASX 200 decreased by 0.6%. In Hong Kong, the Hang Seng index futures pointed to 17,443, slightly below the previous close of 17,444.3.

U.S. markets also faced significant downturns, with the S&P 500 experiencing its worst week since March 2023 and the Nasdaq Composite suffering its most significant drop since March 2022. Friday's trading saw the S&P 500 fall by 1.73%, the Nasdaq by 2.55%, and the Dow Jones Industrial Average by 1.01%. This report included contributions from CNBC's Samantha Subin and Pia Singh.