Asian markets traded cautiously on Monday, with investors bracing for the start of an anticipated U.S. interest rate easing cycle.
Central banks in Japan and the UK are also set to meet this week, though both are expected to maintain their current policies. Meanwhile, a packed U.S. economic calendar includes key data releases on retail sales and industrial production.
Geopolitical concerns continue to linger, with the FBI confirming a second assassination attempt on Republican presidential candidate Donald Trump at his Florida golf course on Sunday.
Market activity was subdued due to public holidays in China, Japan, South Korea, and Indonesia.
MSCI's broadest index of Asia-Pacific shares outside Japan remained nearly flat after a 0.8% gain last week. Japan's Nikkei was closed, but futures traded lower at 36,490, down from a previous cash close of 36,581, as recent yen gains pressured exporters.
U.S. stock futures were marginally higher, with S&P 500 and Nasdaq futures both showing slight gains.
Over the weekend, disappointing economic data from China showed industrial output growth slowing to a five-month low in August, with further declines in retail sales and new home prices.
Ahead in the week, The Bank of England is expected to hold rates steady at 5.00% when it meets on Thursday, although markets are pricing in a 31% chance of another cut. The Bank of Japan is also likely to hold steady at its meeting on Friday, though it may signal plans for further tightening in October.
South Africa's central bank is expected to ease policy later this week, while Norway's central bank is forecast to keep rates unchanged.
Among currencies, the recent decline in U.S. Treasury yields has strengthened the yen, which stood at 140.82 per dollar, after gaining 0.9% last week to reach a near nine-month high. The euro remained steady at $1.1086, kept in check by expectations of further rate cuts from the European Central Bank.
The Canadian dollar held at 1.3580 per U.S. dollar following comments from Bank of Canada Governor Tiff Macklem, who suggested faster rate cuts could be on the horizon during an interview with the Financial Times.
Lower bond yields have supported gold prices, which stood at $2,579 per ounce, near all-time highs of $2,585.99.
