Asian markets closed lower on Monday as concerns heightened over Europe's political stability and China issued mixed economic data.
The dollar maintained its strength, which suppressed oil and gold prices in Asian trading.
Central banks in Australia, Norway, and the U.K. are anticipated to keep rates unchanged in this week's meetings, while the Swiss National Bank (SNB) is expected to make a 25-basis point rate cut.
Chinese stocks declined following a range of economic data indicating a rocky recovery. The People's Bank of China (PBOC) kept a key policy rate unchanged, falling short of some expectations for a rate cut after unexpectedly weak bank lending data.
The Shanghai Composite Index fell by 0.55% to close at 3,015.89, and Hong Kong's Hang Seng Index closed slightly lower at 17,936.12 after a volatile session.
China's retail sales in May exceeded forecasts, but industrial output, home sales, and fixed-asset investment were disappointing, indicating that Beijing might need to take further steps to stimulate weak domestic demand.
State media in China reported that the country faces both internal and external constraints on lowering rates.
Japanese markets led the regional decline as the Bank of Japan's delay in policy normalization raised economic outlook concerns.
Core machinery orders fell in April for the first time in three months, adding to the disappointment.
The Nikkei Average dropped 1.83% to 38,102.44, while the broader Topix Index fell 1.70% to 2,700.01.
Toyota Motor fell 2.7% amid ongoing repercussions from a testing scandal. Meanwhile, Honda Motor, Nissan, Suzuki, and Mazda lost between 3% and 4%. Chip-related stocks also underperformed, with Tokyo Electron and Advantest declining by 3% to 4%.
South Korean stocks ended lower on worries over a potential delay in long-awaited interest-rate cuts by the U.S. Federal Reserve. The Kospi average dipped 0.52% to 2,744.10. In contrast, Hyundai Motor surged 3.9% after its Indian division filed for an initial public offering.
Australian markets ended modestly lower, weighed down by mining and energy stocks. The benchmark S&P/ASX 200 fell 0.31% to 7,700.30, while the broader All Ordinaries Index closed 0.39% lower at 7,943.60.
In New Zealand, the benchmark S&P/NZX-50 Index dropped 1.40% to 11,698.51 after data revealed the services sector experienced its weakest activity level in almost three years in May.
In the U.S., stocks ended narrowly mixed on Friday but registered strong weekly gains amid growing expectations for the Federal Reserve to cut interest rates in September.
Economic releases showed U.S. import prices fell for the first time in five months in May, and year-ahead inflation expectations remained unchanged at 3.3% in June. However, consumer sentiment dropped to a seven-month low in June.
The tech-heavy Nasdaq Composite inched up 0.1% to reach a record closing high, while the S&P 500 finished slightly lower, and the Dow Jones Industrial Average eased 0.2%.
