Fresh easing measures from China over the weekend, alongside a barrage of economic data and policy releases, will likely keep Asian financial markets on a bumpy ride this week.
The People's Bank of China unleashed a 25-basis-point cut in benchmark lending rates and one-year deposit rates, respectively, on Sunday, after growth for the first three months of 2015 slowed to 7 percent, its slowest pace since 2009. Sunday's move marked Beijing's third interest rate reduction since November.
China: Stimulus enough?
With Chinese stocks in the spotlight following last week's wild moves, a data deluge from Beijing will be closely eyed. The benchmark Shanghai Composite ended the week 5.3 percent lower - its biggest weekly loss since May 2010 - following a three-day selloff sparked by worries over a clampdown on margin trading and upcoming new-share sales.
Among data scheduled for release on Wednesday, industrial output likely accelerated last month, with economists in a Reuters poll predicting an annual rise of 6.00 percent, higher than March's 5.60 percent gain.
Retail sales may grow 10.50 percent on-year in April, following March's 10.20 percent increase, while year-to-date fixed asset investment is expected to hold steady at 13.50 percent, the Reuters poll said.
But, analysts say this still leaves room for further policy support.
"There could be a slowdown in their deficit reduction plans like tax cuts for exporters.. and expect further spending measures like infrastructure projects. Basically, small-scale things that could add a bigger lift to the economy," Alaistair Chan, economist at Moody`s Analytics, told CNBC early Monday.
"The actual cut won't do much by itself, but it works more in terms of a signalling effect showing that the government is stepping up on the stimulus. It's a positive for the markets," he added.