Investors are expected to eye key China trade and inflation data due this week, as the country returns from its Golden Week holiday.
Moody's Analytics economists said in a note that the data would likely show "an economy on the mend, albeit with persistent overcapacity across heavy industries."
China's September trade figures, due on Oct. 13, will give investors a steer on the health of the world's largest exporter, and whether domestic demand improved in September.
"Exports, particularly of manufactured goods, have been more promising lately [and] this trend should continue if the U.S. economy gathers steam," Moody's Analytics said.
Investors will also eye September imports, after the previous month's surprise increase. China's August imports rose by 1.5 percent year-on-year, beating a Reuters poll forecast of a 4.9 percent decline.