The retreat in oil prices also raised optimism that the Federal Reserve would hold interest rates steady next month.
The MSCI Asia Pacific Index climbed 0.4%, with South Korea’s Kospi leading gains, up as much as 3% before trading 1.86% higher intraday. Japan’s Nikkei 225 advanced 1.68% and the Topix gained 0.95%, while Hang Seng futures slipped 0.6%.
The Japanese yen held steady near the 159.45-159.50 per dollar mark, even as reports emerged that Prime Minister Sanae Takaichi’s administration backed a Bank of Japan rate hike, with a raise now expected in September or October, this year according to a Bloomberg report. The offshore yuan was little changed at 6.7436 per dollar.
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Thursday’s US producer price index data, showed wholesale inflation cooling by more than economists had projected in July as the headline figure eased to a 4.7% annual pace from 5.5% in June and held flat month-on-month. Combined with last week’s weaker jobs report, the data reduced the odds of a September rate hike to below 40% in money markets.
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Traders were also encouraged by renewed enthusiasm for artificial intelligence stocks, recovering from July’s semiconductor slump, even as unresolved West Asia tensions lingered as a risk factor.
Separately, Washington moved to slap a 100% tariff on imported drones and their components, aiming to reduce dependence on foreign suppliers.Oil prices steadied after Thursday’s sharp decline snapped a six-day winning streak. Brent crude hovered near $87.20 a barrel, while West Texas Intermediate edged up 0.1% to $81.35.
