Australia will likely take the spotlight early this week, with markets set to parse the country's cliff-hanger election results and await its central bank meeting.
Fresh developments on the U.K.'s political leadership will also be keenly awaited.
The Australian federal election over the weekend failed to produce a clear winner, with neither major party gaining an outright majority, raising the prospect of prolonged political uncertainty.
Following quick-step on the election, the Reserve Bank of Australia (RBA) is due to meet on Tuesday to decide on its monetary policy. Analysts expect the RBA to keep its cash rate unchanged at a record low of 1.75 percent.
Heading into the weekend election, the S&P/ASX 200 tacked on a total of around 2.6 percent last week, despite political turmoil in the U.K. after its Brexit vote and the shifting contest to become Britain's next prime minister.
Paul Bloxham, chief economist for Australia and New Zealand for HSBC, said Australia's growth remained strong, while business conditions, jobs growth and house prices were all at favorable level levels.
"Britain takes only 2.8 percent of Australia's exports and, although financial connections are larger, recent net capital inflows to Australia have mostly come from Asia," he said.