Chinese investors are bracing for more weakness after the market fell to a six-month low on Monday.
The Shanghai Composite Index lost 2.37 percent to end at 2170.81, the fourth biggest drop this year. Producer price deflation for the fourth month in a row, anticipation of more weak data, another large initial public offering (China Railway Materials) about to be launched, and reports of an extensive insider trading probe by the securities regulators all weighed on sentiment.
U.S.-listed Ming Yang Wind PowerGroup is in talks to acquire Danish wind turbine maker Vestas for 1.5 billion to 2 billion euros ($1.8 billion to $2.5 billion), according to Caixin, an influential business website. Caixin cited unnamed business and regulatory sources.
Stocks to Watch:
Transport and Energy Stocks - Zhou Wangjun, deputy chief of pricing at the state planning agency, told state television that fuel prices will be cut on Wednesday to bring them in line with changes in global crude prices. Analysts expect a cut of 400 yuan to 600 yuan ($63.24 to $94.86) per metric ton, or about 4 percent to 6 percent. Zhou also said China will not implement the new fuel-pricing mechanism in the short term.
Poly Real Estate - One of China's top developers said in its preliminary earnings report that first half net profit fell 12.13 percent to 2.45 billion yuan ($387 million), while revenue rose 32.86 percent to 20.18 billion yuan ($3.19 billion).
Citic Securities - China's largest brokerage said its June net profit dropped 19.45 percent from a month ago to 356 million yuan ($56 million). Revenue slipped 11.2 percent.
China Railway Erju - The engineering contractor said it won 87 contracts worth 15.73 billion ($2.5 billion) yuan in the first half, most were nonrailway projects as China slowed railway expansion.
Midea - The appliance maker expects an increase of up to 15 percent for its first half net profit. Appliance makers' shares tumbled on Monday after reports that some were scamming on the government's subsidies program for energy-efficient appliances. Analysts say expectations of disappointing earnings also contributed to the sharp selloff.
Coming Up This Week:
TUESDAY: Japanese Household Confidence, Japanese Tertiary Industry Activity Index, Japanese CGPI, South Korean Unemployment Rate, Australian Westpac Consumer Sentiment, Australian Home Loans
WEDNESDAY: New Zealand Business PMI, Australian MI Inflation Expectations, Australian Unemployment Rate, Japanese Interest Rate Decision, South Korean Interest Rate Decision
THURSDAY: Indian Manufacturing Output, Indian Industrial Production, Bank of Japan Press Conference, Chinese Retail Sales, Chinese Industrial Production, Chinese GDP, Chinese Fixed Asset Investment
FRIDAY: Japanese Industrial Production, Singaporean Retail Sales, Bank of Japan Monthly Report
—By Cheng Lei, CNBC Asia Pacific