Asia Stocks Surge to Strongest Week Since June Amid Softer Inflation

Asian stocks are on track for their strongest weekly performance since mid-June as softer US inflation continues to reduce expectations of a Federal Reserve rate hike. The region's main index, rose about 0.5% and is now up 2.7% for the week.

The rally follows another strong session on Wall Street, where the closed at a record high on Thursday, and the rose to its highest level since late June. The move was driven by US producer prices, which were unchanged in July, below forecasts for a 0.2% increase.

South Korea's KOSPI index surged 2.4%, while Japan's climbed 0.6%. China's, however, slipped traded flat, and Hong Kong's dropped just over 1%.