After a sharp selloff last week, Asian traders looking for a degree of stability this week may not find much relief from Japanese gross domestic product (GDP) and China's monthly data indicators.
Due on Wednesday, Japan's GDP for the April-June period is expected to contract for the first time in two years on the back of a three-percentage-point sales tax hike launched at the start of the quarter.
A Reuters poll of 25 economists see GDP shrinking 7.1 percent on year and 1.8 percent on quarter, compared to the economy's 6.7 percent on-year rise in the first three months of 2014 when consumers frontloaded on spending before the tax hike.
"Although the payback effect following the consumption tax hike was anticipated, the contraction may be larger than the initial forecast," said Societe Generale analysts in a note. The bank's predictions are slightly more bearish than consensus at 1.6 percent on quarter.