Japan's core machinery orders fell at a record pace of 14.8 percent in May, far worse than the 3.3 percent forecast, while inflation in China eased to a 29-month low of 2.2 percent in June.
The data comes on the heels of Friday's disappointing U.S. jobs report which showed non-farm payrolls grew by only 80,000 in June.
Adding to pressure, Spanish bond yields rose past the 7 percent level viewed as unsustainable ahead of a meeting by euro zone finance ministers later in the day.
Alcoa Inc (AA.N) will kick off earnings season after the closing bell with the aluminum giant expected to post a 5-cent per share profit for the second quarter. Investors will closely monitor corporate earnings for signs the euro zone debt crisis has damaged profits.
"With Europe's ability to shift sentiment with a headline, investors have been short-sighted and quick to lose confidence," said Andre Bakhos, director of market analytics at Lek Securities in New York.