The biggest risks for Asia markets this week

People celebrate in front of the Greek parliament as Greek voters vote 'No' in the austerity referendum on July 5, 2015.
Milos Bicanski | Getty Images
People celebrate in front of the Greek parliament as Greek voters vote 'No' in the austerity referendum on July 5, 2015.

Asia's financial markets are bracing for a turbulent week as a flurry of central bank decisions and economic data on tap will likely add to the simmering uncertainty over Greece's future in the euro zone.

Greece said 'No'

In a crucial referendum held on Sunday, Greece voted decisively in favor of the 'No' option – indicating their support for Athens to turn down the latest bailout terms offered by foreign creditors and amplifying Greece's chances of exiting the euro zone.

Following the results, Greek Prime Minister Alexis Tsipras on Monday called for "a strong national front" to negotiate a way out of the country's debt crisis.

"We argue that a 'Grexit' is now the most likely scenario. Agreeing on a program with the current Greek government will be extremely difficult for euro zone leaders, given the Greek rejection of the last deal offered and it will be a difficult sell at home, especially at the Bundestag or in Spain ahead of the General Elections," Barclays analysts wrote in a note released early Monday.

As the risks of losing a euro zone member rise, the euro fell more than 1 percent to $1.0979 in early Asian trade, from around $1.1112 late on Friday. The Australian dollar lost 0.3 percent of its value against the U.S. dollar, hitting $0.7489 - its lowest level since May 2009. Meanwhile, the Japanese yen strengthened on the back of safe haven bids, trading at 122.33 versus the greenback in early trade.


Greece votes 'No' to bailout package
Greece votes 'No' to bailout package   

Central bank watch

This week, central bankers in Australia and South Korea will meet for their monthly meetings and analysts are expecting no major change in monetary policies.

According to a poll by Reuters, all 22 economists surveyed see the Reserve Bank of Australia (RBA) keeping the cash rate unchanged at a record low of 2 percent at its meeting Tuesday. Economists also expect rates to stay steady through 2016.

Meanwhile, the Bank of Korea (BOK) will also likely stand pat on monetary policy at its meeting Thursday, according to Moody's Analytics, after the central bank cut its policy rate by 25 basis points last month to a record-low 1.5 percent to help stave off any harmful economic effects from an outbreak of the Middle East Respiratory Syndrome (MERS).

Beyond Asia, markets will be on the lookout for minutes from the Federal Open Market Committee's (FOMC) two-day policy meeting on Wednesday, alongside Federal Reserve chair Janet Yellen's speech at the end of the week which "could be a preview to her semi-annual testimony to the U.S. Congress on July 15-16," UOB economist Alvin Liew told CNBC on Friday.

Read MoreWhat June jobs miss means for Fed rate hike timing

Asia healthcheck

Japan will release current account data on Wednesday, which will likely see the nation logging its eleventh straight monthly current account surplus. According to a Reuters poll, the surplus probably widened to 1.542 trillion yen ($12.52 billion) in May, from 1.326 trillion yen in the preceding month.

However, core machinery orders - seen as a leading indicator of capital spending - may see its first decline in three months. The highly volatile data set due Thursday is forecast by 21 economists polled by Reuters to have slipped 5.0 percent in May, from April's gain of 3.8 percent.

In China, consumer price inflation (CPI), due Thursday, is expected to rise 1.3 percent in June from the year-earlier period, according to estimates by Moody's Analytics, a tick higher than the 1.2 percent increase in May. However, producer prices scheduled for release on the same day will likely remain in a deflationary trap, dropping 4.8 percent last month after easing 4.6 percent in May.

"CPI in China has reached the bottom of the cycle, but upward pressure remains minimal due to low input prices," analysts wrote in a note. "But policy easing measures are enabling a rebound in housing and other sectors and this should boost confidence and consumer spending over time, which should lead to a rebound in inflation."

Meanwhile, Australia's jobs report for June will be released on Thursday.

Employment numbers have been a rare bright spot in the slowing economy Down Under; figures from the Australian Bureau of Statistics showed 42,000 jobs added to the labor market in May, well above expectations for an 11,000 gain, and pushing the jobless rate to a one-year low of 6.0 percent.