Asian markets traded lower as US futures slipped ahead of Nvidia's upcoming earnings report, with cautious investors weighing their positions before the high-profile corporate result.

Sentiment across the region was pressured as traders awaited the chipmaker's earnings, which are widely watched as a bellwether for the technology sector. Nvidia has become one of the most closely scrutinized companies in global markets given its central role supplying the graphics processors that power artificial intelligence systems, and its results are often treated as a read on broader AI-related spending by the world's largest technology firms. Attention is also turning to upcoming US economic data, including the PCE inflation index — the Federal Reserve's preferred gauge of inflation — and a scheduled speech by Federal Reserve Chair Jerome Powell, both of which could shape expectations for the path of interest rates.

In commodity markets, crude oil prices dipped more than 2% after Iran and Oman held discussions related to shipping. Brent crude slipped below $87 a barrel amid the talks, extending losses in energy markets. Iran sits near the Strait of Hormuz, a chokepoint for a significant share of the world's seaborne oil trade, which is why diplomatic developments involving the country frequently move energy prices.

The moves in Asia followed weakness in US equity futures, reflecting a risk-off tone among global investors ahead of the Nvidia release and key macroeconomic events later in the week.