BOJ Bets Heat Up Amid Cooling Fed Hopes

Markets are taking a breather after Wednesday's US Consumer Price Index (CPI) data came in largely as expected, dampening bets on a September Federal Reserve rate hike. The 7.2% year-on-year rise in Japanese wholesale inflation reinforced expectations for a Bank of Japan rate hike.

Asian stocks were mostly firm, with the South Korean market hitting its highest levels in three weeks on chip stocks. Oil prices fell after forecasters scaled back this year's global demand outlook due to the Middle East war.

The Reserve Bank of Australia warned of further policy tightening, citing inflation threats remaining on the upside. Key economic releases expected Thursday include UK April-June quarter and June GDP data, as well as US weekly jobless claims.