Asia Stocks Poised to Extend Gains on Easing Inflation Concerns

Asian stock markets are poised to continue their gains as signs of moderating US inflation and lower oil prices have reduced expectations for a Federal Reserve interest rate hike next month.

The MSCI's Asia Pacific Index is on track for its third day of increases, with equity-index futures pointing higher in Japan and South Korea. Meanwhile, Australian contracts are showing a decline.

The S&P 500 rose 0.7% to a record high on Thursday, while the Nasdaq 100 jumped 1.15% to its highest level since late June due to increased hyperscaler spending boosting tech shares. US crude prices slipped 0.2% early Friday after earlier gains.

The data showing US wholesale inflation cooled in July as energy and food costs decreased has led to a decrease in Treasury yields, with some maturities falling by up to seven basis points. Money markets now estimate a less than 40% chance of a Fed rate increase in September.