Asian Stocks Rise as US Inflation Data Damps Fed Hike Expectations
Asian stocks rose on Thursday after US inflation data came in as expected, tempering expectations of further near-term Federal Reserve rate hikes. The MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.97%, led by South Korean shares jumping 4.4%. Japan's Nikkei added 1.86%.
The US consumer price index increased 0.1% in July, matching expectations. This small increase may weaken the argument for an interest rate hike from the Fed next month. Money markets now predict a 40% chance of a rate hike, down from 54% a week ago, according to CME Group's FedWatch.
Oil prices eased but remained elevated in Asia. US crude fell 0.83% to $82.58 a barrel and Brent declined 0.71% on the day. Talks between Iran and the US over efforts to end the Gulf war made no headway, with no timetable set for its implementation.