Asian stocks rise as US inflation data dents September Fed hike bets

Asian stocks experienced a rise on Thursday following U.S. inflation data that fell in line with expectations, casting doubt on potential near-term Federal Reserve rate hikes. Meanwhile, oil prices hovered around $80 per barrel as negotiations between Washington and Tehran remained stalled in their efforts to resolve the Gulf conflict.

The MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.97 percent, propelled by a 4.4 percent surge in South Korean shares. The Nikkei in Japan increased by 1.86 percent, while the S&P 500 E-minis gained 0.02 percent. U.S. consumer prices rose by 0.1 percent in July, aligning with forecasts. This modest increase may weaken the case for a Fed rate increase in the upcoming month.

Recent predictions from money markets indicate a 40 percent likelihood of a rate hike, down from 54 percent a week prior, as reported by CME Group's FedWatch. With the upcoming August Consumer Price Index (CPI) data and a modest rise in crude oil futures since July, both the Federal Reserve and markets will likely closely monitor the data until just before the September FOMC meeting, according to Den Miki, a senior rate strategist at SMBC Nikko Securities.