Asian Stocks Rise on US Inflation Data, Rate Hike Bets Dim

Asian stocks rose on Thursday after US inflation data came in line with expectations, reducing bets for a near-term Federal Reserve rate hike.

The MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.97%, led by South Korean shares jumping 4.4%.

The small increase in July consumer prices could weaken the argument for an interest rate increase from the Fed next month, with money markets now predicting a 40% chance of a rate hike down from 54% a week ago, according to CME Group's FedWatch.