US Inflation Data Boosts Asian Markets, But Oil Prices Remain Volatile

Asian shares ended the week on a mixed note, with some indices rising and others falling after US inflation data showed a better-than-expected improvement in July. The Tokyo Nikkei 225 index was one of the few gainers, up 0.3% to 68,533.85.

The S&P/ASX 200 in Australia fell 1.1% to 9,090.90, while Taiwan's Taiex lost 0.2%. The Sensex in India dropped 0.5%, and the Shanghai Composite index was 0.5% lower at 3,908.05.

The report showed wholesale prices rose 4.7% year-over-year in July, a slight improvement from June's 5.5% rate. Analysts expected inflation to rise by about 4.9%, so the actual figure was seen as a positive sign.

Stephen Innes of SPI Asset Management noted that 'the disinflation ducks are starting to line up,' suggesting that interest rates may not need to be raised in the near future. Higher rates would help combat inflation, but also slow down economic growth and increase borrowing costs.