The final week of July is expected to be a busy one in Asia Pacific, with the region entering the thick of its earnings season while monetary policy decisions from central banks in the United States and Japan are due.
The Bank of Japan (BOJ) will begin its two-day policy meeting on Thursday, and further policy easing is expected by market watchers.
At the G20 meeting in China which concluded over the weekend, BOJ governor Haruhiko Kuroda said he was prepared to further ease monetary policy, if necessary, to achieve the central bank's 2 percent inflation target, reported Reuters.
"Japan will report inflation figures on Friday, which is expected to show the economy fell further into deflation," said Mohammed Apabhai, head of Asia Pacific Trading Strategies at Citi in a note on Sunday.
Kuroda also dismissed speculations about "helicopter money" - essentially printing money and distributing payouts -, saying it would be prohibited by law if it meant the BOJ directly underwriting government debt, said Reuters.
Analysts at Societe Generale said on a Monday note the BOJ faced myriad problems that would likely influence its monetary policy decisions. These include weak output growth, deflationary pressures, stronger currency and intense speculation about additional policy easing.
"We expect the BOJ to expand its asset purchases yet again, as well as cut the policy rate by another 10 basis points to negative 0.2 percent," the Societe Generale analysts said.
The market also expects forthcoming fiscal stimulus to prop up Japan's anemic growth, limit deflationary pressures and counter possible drawbacks from global events such as the UK's decision to leave the European Union.
The Japanese government is compiling a stimulus package of at least 20 trillion yen ($188 billion), Japan's Kyodo News reported on Thursday, citing sources close to the matter.
Stateside, the Federal Open Market Committee (FOMC) is due to meet on Tuesday and Wednesday, with traders largely expecting the Fed to stand pat on rates. But traders will closely watch the policy statement for clues for the timing of the next hike.
"After a very dovish tone in June, the FOMC statement this time may translate a more upbeat flavor amid recent data strength and put back a rate hike on the table this year," said Cynthia Kalasopatan from Mizuho Bank.