Asian Stocks Surge on Weaker Fed Hike Bets

Asian stocks rose broadly on Thursday after US inflation data for July matched expectations. This reduced the market-implied probability of a Federal Reserve rate increase in September to 40% from 54% a week earlier, according to Reuters.

The MSCI Asia-Pacific index excluding Japan gained 0.97%, while South Korea's Kospi jumped 4.4% and Japan's Nikkei 225 advanced 1.86%. Australia's S&P/ASX 200 fell 0.6%, making it a notable exception to the regional gains.

The US Consumer Price Index rose 0.1% in July from June and 3.4% over the year, while core CPI increased 0.2% monthly and 2.5% annually, the Bureau of Labor Statistics reported on August 12.