U.S. Congressional leaders reached a deal late Sunday on around $1 trillion in federal funding that would finance the government through September 30, averting a government shutdown later this week.

The deal, which includes a $12.5 billion increase for defense and $1.5 billion for border security, must now be passed by the House of Representatives and the Senate by Friday, in order to avoid the first government shutdown since 2013.

Global stock markets edged higher in holiday-thinned trade on Monday, as the U.S. government looked likely to avoid a shutdown.

Asian stocks shook off a sluggish start and edged up on Monday, with Japan's Nikkei outperforming on upbeat earnings, though much of the region was shut for a holiday.

In Europe, several markets across the continent, including Frankfurt, Paris and London, remained closed for the Labor Day holiday.

On Wall Street, the blue-chip Dow futures inched up 25 points to 20,965 by 09:25 GMT, the S&P 500 futures tacked on 4 points, while the tech-heavy Nasdaq 100 futures rose 10 points.

The dollar index, which tracks the greenback against a basket of six rival currencies, was up less than 0.1% at 98.97 in New York morning trade.

Oil prices edged lower on Monday, starting the week off in negative territory as rising U.S. shale production continued to feed concerns about a global supply glut.

U.S. crude was down 26 cents, or around 0.5%, to $49.07 a barrel, while Brent lost 32 cents to $51.73.

Traders will focus on a number of data points Monday to gauge the health of the world's largest economy, especially in the wake of a recent string of disappointing economic reports.

The U.S. is to release personal income, consumer spending and core price index data for March at 12:30 GMT. At 14:00 GMT, the ISM will publish its manufacturing survey for April.

There is also a speech from U.S. Treasury Secretary Steve Mnuchin at 11:45 GMT. He is due to speak at the Milken Conference, in Los Angeles.

Markets are currently pricing in around a 65% chance of a rate hike in June.

Growth in China's manufacturing sector slowed faster than expected in April, an official survey showed on Sunday, as producer price inflation cooled and policymakers' efforts to reduce financial risks in the economy weighed on demand.

The official manufacturing purchasing managers' index released on Sunday dipped to a six-month low of 51.2 in April from 51.8 in March, below the forecast for 51.6.

Anything above 50.0 signals expansion, while readings below 50.0 indicate industry contraction.

The private sector Caixin/Markit PMI manufacturing survey, which focuses more on small and mid-sized firms, will be published on May 2.