A Reserve Bank of Australia (RBA) meeting is likely to be one of the highlights for Asian markets this week, with the central bank expected to hold its fire a month after cutting interest rates to a record low.
Chinese economic data could take the spotlight at the end of the week as markets assess the outlook for the world's second biggest economy, while Japan's Prime Minister Shinzo Abe is tipped to unveil a closely-watched proposal to deliver long-term economic growth.
The RBA meets on Tuesday and its interest rate decision is expected at 0430 GMT. The central bank cut rates by 25 basis points to 2.75 percent last month and analysts say that a sharp weakening in the Australian dollar, which boosts exporters, is a strong reason why not to expect a rate cut this month.
The Aussie dollar tumbled more than 7 percent in May to well below the one-to-one level with the U.S. dollar. It was trading at $0.9589 on Monday.
Some economists, however, are not ruling out a rate cut this week. AMP Capital's Chief Economist Shane Oliver expects a quarter point cut that would take rates to a new record low of 2.5 percent.
"It is another close call, as the RBA may decide that having cut in May and with the fall in the Aussie dollar it will wait and assess for now," Oliver said in a note.
"Against this though, the Aussie dollar hasn't really fallen enough to provide a big stimulus to the economy, the latest business investment readings confirm that mining investment has peaked and that non-mining investment is likely to remain weak, readings for business and consumer confidence have been poor and forward looking jobs indicators are soft," he said.
(Read More: More Rate Cuts in Australia?)
A day after the RBA decision, Australia releases first quarter economic growth data. Analysts polled by Reuters forecast a 2.7 percent rise in gross domestic product from a year earlier, down from a 3.1 percent increase in the previous quarter.