Traders in China are expected to focus on earnings results and a batch of economic data this week.
More than 220 firms are set to report first-half numbers, while July economic data are due for release on Thursday. With inflation expected to fall below 2 percent, the government has more room to ease. But given the pockets of strength suggesting a recovery in the latest PMI numbers, pro-growth measures may be moderate rather than aggressive.
The Shanghai Composite Index added 1.02 percent to finish at 2132.80 on Friday, pushing the benchmark up 0.19 percent for the week and snapping a six-week losing streak.
Investors are likely to react negatively to news out Friday that China will expand its over-the-counter (OTC) market trials to three other locations. Even though regulators say the size of fundraising would be small and OTC markets won't hurt liquidity in the main bourses, there remain fears that the extra competition with the A-share market will leech away quality listings and investment interest.
Securities regulators say they will not lower stamp duty for stock trading in the near term. Part of Friday's rally was fueled by regulators' commentary that they are working on stamp duty reductions.
Stocks to Watch:
Vanke - China's top listed developer said July sales rose 14.4 percent to 10.39 billion yuan ($1.6 billion), the third month of sales growth as the property market recovered. But month on month, sales fell 22 percent, partly because sales were particularly strong in June. The property giant reports first-half earnings after the market closes Monday.
—By Cheng Lei, Special to CNBC.com; Reuters contributed to this story