U.S. new vehicle sales are expected to fall 1.5% in January from a year earlier on seasonally slower sales and signs of cooling demand for electric vehicles, according to findings from a joint report by industry consultants J.D. Power and GlobalData on Friday.

U.S. prices rose marginally in December, keeping the annual increase in inflation below 3% for a third straight month, bolstering expectations that the Federal Reserve will start cutting interest rates this year.

Chinese equities led a rally in Asian stocks to start the week, after regulators took new steps over the weekend to support the market.

Oil prices climbed on Monday after a drone attack on U.S. forces in Jordan added to worries over supply disruption in the Middle East as Houthi rebels stepped up their attacks on vessels in the Red Sea, hitting a Trafigura-operated fuel tanker.

The dollar started the week on a steady footing as investors took stock of U.S. economic data ahead of the Federal Reserve policy meeting this week, while escalating geopolitical tensions in the Middle East kept risk sentiment in check.

Core inflation in Japan's capital slowed below the central bank's 2% target to the lowest rate in nearly two years, data showed on Friday, underscoring policymakers' view that cost pressures will continue to ease in coming months.