BANGKOK (AP) — U.S. futures and world shares were mostly lower Monday, with Tokyo’s benchmark falling nearly 2% after the Bank of Japan's governor hinted at a possible interest rate hike.

Oil prices surged more than $1 a barrel.

Early Monday, the future for the S&P 500 was down 0.6%, while that for the Dow Jones Industrial Average lost 0.5%.

Germany's DAX lost 1% to 23,589.90, while the CAC 40 in Paris lost 0.5% to 8,079.94. Britain's FTSE 100 edged 0.1% lower, to 9,707.68.

In Japan, the Nikkei 225 declined 1.9% to 49,303.28. BOJ Gov. Kazuo Ueda told reporters he expects the central bank to discuss a possible rate hike at its Dec. 19 meeting.

Japan's benchmark interest rate, at 0.5%, has remained near zero for years as its leaders struggled to spur faster economic growth and counter deflation. With inflation holding steady above its target of about 2%, the BOJ is caught between raising rates to counter rising prices and a weaker currency, and supporting easy credit to keep businesses borrowing and consumers spending.

Regional reports on manufacturing activity are being closely watched for signs of how U.S. President Donald Trump's higher tariffs are affecting Asian economies.

A survey of Japanese factory managers released Monday showed activity slowing in November. The S&P Global Japan Manufacturing Purchasing Managers index, or PMI, was at 48.7 last month, a slight improvement from 48.2 in October but still in contractionary territory on a scale of zero to 100 where 50 marks the cutoff for expansion. It was the fifth straight month of contraction.

“The latest PMI data showed that Japan’s manufacturing sector continued to struggle with weak demand conditions in November, with firms signaling another solid decline in overall new business,” Annabel Fiddes, economics associate director at S&P Global Market Intelligence, said in a report.

China’s factory activity contracted for the eighth straight month in November, according to an official survey released Sunday, underscoring challenges for the country’s economy despite an extension of the trade truce between the U.S. and China.

But Hong Kong's Hang Seng climbed 0.7% to 26,033.26, while the Shanghai Composite index gained 0.7% to 3,914.01.

In Seoul, the Kospi slipped 0.2% to 3,920.37. Australia's S&P/ASX 200 declined 0.6% to 8,565.20.

Taiwan's Taiex lost 1% and the Sensex in India shed 0.1%.

Across Asia, PMI readings reflected weak factory activity for November, though exports from the region have been rebounding in recent months, Shivaan Tandon, Asia economist for Capital Economics, said in a commentary.

Consumer spending during the Black Friday and Cyber Monday retailing bonanza was expected to exceed expectations, despite uncertainty over the outlook for the U.S. economy.

During Friday’s abbreviated post Thanksgiving session, the S&P 500 rose 0.5% and the Dow gained 0.6%. The Nasdaq gained 0.7%.

Trading was halted for all three for hours on Friday due to a technical issue at the Chicago Mercantile Exchange. The CME said the problem was tied to an outage at a CyrusOne data center.

Stocks rallied last week on hopes for another Federal Reserve rate cut after swooning in mid-November as investors fretted over the durability of the frenzy around artificial intelligence.

Nvidia lost 1.8% Friday, ending the month with a double-digit loss. Oracle fell 23% in November while Palantir Technologies sank 16%.

Some tech stocks did notch monthly gains, most notably Alphabet, which rose nearly 14%, due to excitement about its recently released Gemini AI model.

The U.S. central bank, which has already cut rates twice this year in hopes of shoring up the slowing job market, is facing an increasingly difficult decision on interest rates as inflation rises and the job market slows. Cutting interest rates further could help support the economy as employment weakens, but it could also fuel inflation.

The minutes of the Fed’s most recent meeting in October indicated there are likely to be strong divisions among policymakers about the Fed’s next step.

In other trading early Monday, U.S. benchmark crude oil gained $1.14 to $59.69 per barrel. Brent crude, the international standard, added $1.14 to $63.52 per barrel.

The U.S. dollar fell to 155.25 Japanese yen from 156.14 yen. The euro rose to $1.1622 from $1.1596.

Bitcoin dropped 4.3% to $87,115.