Traders in Asia will also look toward August consumer prices index from Japan and Hong Kong, and central bank decisions from Bank of Japan and People's Bank of China.

Traders in Asia are watching August trade data from China and India. China’s exports and imports are expected to grow by 6.5% year-on-year and 2%, respectively.

The Asia-Pacific equity markets were mostly in red as investors geared up for highly anticipated monetary policy decisions from Japan and the US this week. The Japan (NKY:IND) -0.07%

Japan's Nikkei 225 futures pointed to a softer open for the market, with the futures contract in Chicago at 35,240 and its counterpart in Osaka at 35,150 compared to the previous close of 36,391.47. Based on the Osaka futures level, the Nikkei is expected to fall 3.5% at the open.