Asian equities were poised to climb Monday as recent selling pressure in US stocks eased and inflation data supported the outlook for Federal Reserve rate cuts this year. Asian markets looked set to extend gains following a positive session in the US, where the S&P 500 and Nasdaq both closed higher.

The latest US consumer price index report showed inflation cooling more than expected, reinforcing expectations that the Federal Reserve may cut interest rates later this year. This data helped ease concerns about persistent price pressures that had weighed on risk assets in recent weeks. The prospect of looser monetary policy has historically benefited Asian markets, which tend to be sensitive to global liquidity conditions.

Investors will be watching for further economic data from both the US and Asia this week, including China's manufacturing PMI and US retail sales figures. The positive sentiment in Asian markets reflects growing optimism that central banks may soon pivot to a more accommodative stance, potentially providing support for risk assets across the region.