China stocks are expected to trade sideways after yesterday's rebound. The Shanghai Composite gained 1.39 percent to end at 2378.89 amid higher turnover.
State-owned firms' profits declined in the January-April period. The worst performers were from the resources, construction, and transportation industries.
Zhang Xiaohong, a market regulation official at the Ministry of Housing and Construction, said a decline in property prices will be the theme of the market in the short term.
Regulators will review a record nine initial public offering applications on Friday. The faster pace of IPOs coming to market — the pipeline has 700 companies — is likely to weigh on sentiment.
Stocks to Watch
Property Stocks - China's bureau of statistics is due to release the 70 cities' housing prices data at 9:30 a.m. SGP/HK time, when the Chinese market opens. March was the first month in which the average price had shown a year on year drop.
—By Cheng Lei, CNBC Asia Pacific