Asian Stocks Rise as US Inflation Data Dents Rate Hike Bets
Asian stocks edged higher on Thursday as investors scaled back their bets on a September Federal Reserve rate hike, following softer-than-expected US inflation data. The S&P 500 index rose 0.17% to 7,445.72, while the Nasdaq outperformed peers.
The Fed's decision not to raise rates next month is now priced in at a 65% probability, up from 50% on Wednesday before the release of the latest economic data and inflation figures.
Oil prices slipped slightly to $88, as signals of lower demand outweighed the ongoing stalemate in peace negotiations over Iran. Commercial crude oil inventories posted their largest weekly gain since January 2023, and the Organization of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026.
Earnings from AI infrastructure firms boosted technology stocks on Wall Street, with the broader semiconductor index advancing about 2.5% and the Nasdaq rising 0.03%. MSCI's main world stocks index rose 0.10%, while Europe's STOXX 600 was up 0.11%.