Asian stocks rise as US inflation data dents September Fed hike bets

Business Recorder reported that Asian equities advanced on Thursday after a US consumer price reading matched forecasts, reducing bets on another near-term Federal Reserve rate increase. MSCI's Asia-Pacific index excluding Japan climbed 0.97%, with South Korean stocks leading with a 4.4% jump, while Japan's Nikkei added 1.86%.

US consumer prices grew 0.1% during July, matching forecasts, and the modest gain may weaken the case for a Fed increase at its next meeting. Market pricing, tracked by CME Group's FedWatch, now implies a 40% probability of a hike next month, versus 54% last week. Crude eased slightly, with US crude at $82.58 a barrel and Brent at $88.35, though both stayed elevated while Washington and Tehran failed to agree on ending the Gulf war.

US President Donald Trump claimed Washington holds total control of the Strait of Hormuz, a claim Iran quickly rejected, saying the route is still blocked. The dollar eased 0.06% to 159.32 yen as speculation grew that the Bank of Japan may raise rates next month, sooner than the December timeline previously expected. Bullion also firmed, with gold up 0.28% at $4,419.28 an ounce.