After a raft of disappointing figures last week, investors will be looking at data due from Japan and China in the week ahead, for further cues on the health of Asia's two largest economies. Monthly indicators from the U.S., along with corporate earnings from Australia and Hong Kong, will also be on the watch list.
On Monday, China releases its July house price index and investors are bracing for a weak result. A report from the China Index Academy (CIA) showed property prices declined for the third consecutive month in July.
HSBC's preliminary reading of China's purchasing managers' index (PMI) for the month of August is due on Thursday. Government data showed the mainland's manufacturing activity rebounding to 51 in June while the bank's final reading stood at 50.7.
"The past week has seen softer than expected outcomes for industrial production, retail sales, fixed investment and credit growth so markets will keenly await the HSBC flash PMI. A dip in August would be seen as a further sign that Chinese activity has slowed noticeably from its strong second quarter pace," analysts from the National Australia Bank wrote in a note.
In Japan, trade data for July is scheduled for release on Wednesday at 0850 SIN/HK and is expected to rise for the first time in 3 months – a sign that demand overseas is starting to recover.
A Reuters poll of 26 economists forecast exports to increase 3.8 percent in the year to July, with a 1.7 percent annual decline in imports, led largely by a slowdown of crude oil and other energy imports.