Nasdaq futures slumped and technology shares slid in Japan on Monday as surging popularity of a Chinese discount artificial intelligence model wobbled investors' faith in the profitability of AI and the sector's voracious demand for high-tech chips.

Similar to ChatGPT, the chatbot can perform tasks such as answering questions, drafting content and helping users gather information.

China's most important festival, this year public holidays will begin Tuesday and continue until Feb. 4. Millions of Chinese leave the cities to travel back home for a rare break

China's manufacturing activity unexpectedly contracted in January, an official factory survey showed on Monday, its weakest since August, keeping alive calls for stimulus in the world's second-largest economy.