The Bank of Japan said it plans to slow the purchase of Japanese government bonds after the July meeting, in a nod to let the market set the long-term rates in Japan after controlling the yield curve for decades.
The Japanese yen approached the record low of recent years, and the Bank of Japan is widely expected to hold interest rates steady on Friday. Business sentiment among large manufacturing companies fell at a slower pace in the second quarter.
The European Union imposed additional tariffs on most electric vehicles imported from China. However, the amount and scope of tariffs were smaller than feared.
Japan's producer price inflation was positive for the 40th month and rose more than 2% in May, stoking fears of a spillover to consumer price inflation.
China's consumer price inflation was positive and steady from the previous month in May, and producer price inflation declined for the 20th month in a row.
Benchmark indexes in Tokyo rebounded for the second day in a row, and the yen weakened ahead of the Bank of Japan's monetary policy decisions on Thursday.
Market indexes in China resumed their slide on the ongoing property market malaise and lack of concrete measures as investors returned from a three-day holiday.
China's trade surplus in May reached a three-month high after exports accelerated and import growth slowed sharply, signaling weak domestic demand. Benchmark indexes in Hong Kong and Shanghai erased weekly gains.
China's statistics bureau is set to report international trade data on Friday, and investors are estimating export growth to accelerate above 5%. Country Garden reported an increase in residential property sales in May from the previous month, but sales were sharply lower from a year ago.
Japan's market indexes extended the previous session's losses, and wage gains in April lagged core consumer price inflation. Japan's transportation regulator stepped up its investigation of leading automobile makers amid widespread practice of falsifying safety certification.
China indexes extended gains for the third session in a row, and the yuan faces pressure amid worries of capital flight. The service sector's growth accelerated in May and expanded for the 17th month in a row, suggesting a rebound in economic activity in the previous month.
