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China PMI, Australia to steal the show in Asia

Chinese factory activity data and developments in Australia will kick start November for Asia's market watchers.

Over the weekend, China's official purchasing manager's index (PMI) for October fell to 50.8, from September's 51.1, marking a five-month low. The report follows recent data showing gross-domestic product growing at a five-year low last quarter. However, China's National Bureau of Statistics said the data showed the economy was steady, as it entered a new normal.

Meanwhile, the HSBC final purchasing managers' index (PMI) for October came in at 50.4 on Monday, unchanged from the flash reading and following the 50.2 print in September.

Read MoreChina's shadow banking now world's 3rd largest

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Australia in focus

The week ahead is crucial for Australian traders with a monetary policy decision from the Reserve Bank of Australia (RBA) and a raft of economic data on tap, including September retail sales, foreign trade and employment.

On Tuesday, the RBA is widely expected to leave interest rates on hold at 2.5 percent for the 16th consecutive month.

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"Nothing much has changed since the October meeting and benign inflation in the September quarter, sub-par growth and the still high Australian dollar support the case for rates to remain low," said Shane Oliver, head of investment strategy at AMP Capital.

The central bank is due to release its statement on monetary policy on Friday, which is expected to signal that rates will remain on hold well into next year.

"While 16 months on hold sounds like a long time it's still short of the 20-month record that was set between December 1994 and July 1996, but it's likely this record will be breached as a rate hike looks unlikely until around mid-next year,' Oliver said.

Trade data on Tuesday is likely to be weak, with Moody's Analytics expecting the deficit to widen to A$1.13 billion after $790 million in August. Meanwhile, the firm sees retail sales growing 0.4 percent on month, from 0.1 percent in August.

Read MoreAustralia's economy: from mining to building

"Improved consumer confidence coupled with rising house prices and low borrowing costs has kept discretionary spending buoyant in 2014, notwithstanding the temporary federal budget‐induced slowdown in the June quarter," said Moody's economists in a note.

Employment figures will perhaps be the mostly closely-watched after the Australia Bureau of Statistics (ABS) reported a loss of 29,700 jobs in September, excluding seasonality factors, much worse than forecast for the addition of 20,000 jobs.

"Australia's unemployment rate likely held at 6.1 percent in October, [unchanged from previous month]. We are taking the ABS employment data with a grain of salt given the seasonality and data‐collection issues in recent months. Forward‐indicators suggest employment growth is gradually on the mend with business confidence and conditions as well as job advertisements turning up," Moody's said.

Read MoreConfusion aside,Australian job market still soft

Elsewhere in the region

The Bank of Thailand is widely expected to leave its policy rate on hold at 2 percent on Wednesday for an eighth straight month. Investors will be watching out for commentary after government officials slashed the 2014 growth forecast last week to 1.4 percent, from earlier estimates of 2 percent, due to weaker-than-expected exports.

Indonesia's economy is also in focus with third-quarter gross-domestic product (GDP) due this week. A weak reading is expected after growth rose 5.1 percent on an annual basis in the previous quarter, the slowest pace in five years.