Asian stocks rise as rate hike bets ease; Japan, South Korea gauges advance

Asian markets climbed higher on Thursday after the US inflation report and weaker-than-anticipated jobs data suggested that the US Federal Reserve may delay interest rate hikes in September. The MSCI Asia-Pacific Index climbed 0.6%, with gains in Japan and South Korea. Simultaneously, US benchmark indices surged, with the S&P 500 moving closer to a record high, buoyed by megacap chipmakers' strong performance.

S&P 500 futures remained steady, while the Hang Seng Index in Hong Kong slipped by 0.3%, and Japan's Topix rose 0.8%. Australia's S&P/ASX 200 fell marginally. However, caution prevailed amid market volatility, with Nasdaq 100 futures slipping after Cisco Systems reported weaker-than-expected earnings. Cerebras Systems also saw a decline due to a drop in hardware sales.

US consumer prices rose as expected in July, but the overall inflation rate slowed to its lowest level since March 2021. Short-term Treasury securities outperformed, and traders reduced expectations of a September rate increase to less than a 50% probability. Brent crude oil prices dropped slightly, trading around US$88.30 per barrel, while the yen edged closer to the 160 US dollar level, raising concerns about potential intervention by officials.

The US inflation data provided some relief, but persistent price pressures and volatile oil markets complicated the outlook, keeping traders cautious until more data emerged.