Tension between Chinese President Xi Jinping and US Vice-President Mike Pence quashed optimism that relations would improve at Group of 20 meetings starting next week as the Asia-Pacific Economic Cooperation failed to agree on a joint statement for the first time in its history.
Futures trading from late Friday signalled small advances for stocks in Japan after the S&P 500 Index eked out a gain, while Hong Kong shares pointed to a mixed start. Treasuries held on to the recent rally.
Equities remain volatile amid worries for world growth and credit markets are signalling intensifying concern as rising US interest rates push up the cost of debt repayments.
Federal Reserve Vice Chairman Richard Clarida said Friday that policy is getting close to neutral and there is some evidence of global slowing.
Volume will likely be thinned by the US Thanksgiving holiday this week. Meanwhile, oil is hovering around $57 a barrel following its recent about turn, when it slumped into a bear market.
Emerging-markets equities and currencies have enjoyed a recent bounce, fuelled by a spark of optimism from US President Donald Trump on trade, reduced bets on Fed hikes and a trio of rate increases from Indonesia, the Philippines and Mexico.
The Australian dollar has undergone a resurgence this month, prompting some traders to suggest the currency may have bottomed.
Elsewhere, Theresa May said a challenge to her leadership would be a distraction from negotiating with the European Union, and that any new UK prime minister would face the same issues she does.
Investors are the most bearish on the pound since the UK voted to leave the EU and the pound was flat in early trading Monday.