Asian central bank decisions are in the spotlight this week as policymakers debate the best course of action amid expectations of a looming U.S. interest rate hike in September.
The Bank of Japan (BOJ), Reserve Bank of India (RBI), Reserve Bank of Australia (RBA) and Bank of Thailand (BOT) are all due out with monetary reviews.
On the economic calendar, the final China Caixin/Markit purchasing managers' index (PMI) for July took center stage. Data on Monday showed the index dropping to a two-year low of 47.8, well below the 50-mark separating growth from contraction and the preliminary reading of 48.2. That was in contrast to Beijing's official PMI figure of 50 released over the weekend.
"July data signaled that the downturn in China's manufacturing sector intensified at the start of the third quarter. Renewed falls in both total new work and new export orders led manufacturers to cut production at the fastest rate since November 2011. Softer client demand and reduced output requirements contributed to further job shedding and lower purchasing activity, with the latter declining at the sharpest rate since January 2012," Caixin said in a report.