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August 14, 2026 - 00:10
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(Bloomberg) — Asian stocks were poised to extend gains Friday as further evidence of moderating US inflation and a pullback in oil prices reinforced bets that the Federal Reserve will refrain from raising interest rates next month.Equity-index futures pointed higher in Japan and South Korea, putting MSCI’s Asia Pacific Index on track for a third day of gains, while Australian contracts fell. US futures edged higher after the S&P 500 rose 0.7% Thursday to a record, while the Nasdaq 100 jumped 1.15% to its highest since late June as increased hyperscaler spending buoyed tech shares. US crude slipped 0.2% early Friday, snapping its run of gains.Treasury yields fell as much as seven basis points across maturities after data showed US wholesale inflation cooled in July as energy and food costs declined. Money markets now price in a less than 40% chance of a Fed rate increase in September.Elsewhere, a gauge of the dollar edged lower on Thursday, while gold traded below $4,400 an ounce in Asia after slumping 1.3%.The inflation data, following last week’s softer-than-expected jobs report and a pullback in oil prices, is easing pressure on the Fed to tighten policy. Investors are now looking to upcoming US data for clues on whether policymakers can remain on hold.“The next round of data that we get in September and the lead up to the meeting will be pretty critical,” said BofA Securities economist Stephen Juneau. At the same time, “the market obviously has started to really discount hikes more and more given that the data in recent months has been more dovish.”US wholesale inflation decelerated by more than forecast in July. The producer price index rose 4.7% from a year earlier, down from a 5.5% annual increase in June, and was unchanged from the previous month.Even as Treasuries rallied Thursday, the US sold 30-year bonds at the highest yield in a quarter century, underscoring the premium investors are demanding to finance the nation’s deficits.Long-term yields have surged above 5% this year as higher energy prices fueled concern that inflation would remain elevated and force the Fed to keep rates higher for longer. Those pressures have been compounded by heavy Treasury issuance after years of fiscal deficits and a wave of corporate borrowing to finance the artificial-intelligence boom.Fed officials remain divided over the path for rates. Richmond Fed President Tom Barkin argued for holding steady as inflation eases, while Cleveland Fed President Beth Hammack reiterated her preference for a hike. Thursday’s benign inflation reading, coupled with last week’s softer jobs report, may give Fed Chair Kevin Warsh enough room to keep rates unchanged, according to Arun Sundaram at CFRA.“But the Fed’s decision is far from settled,” he said. “Investors still have several potential plot twists to digest.”Oil has also provided some relief. Benchmark crude prices — a key driver of Treasury yields since the US attacked Iran in late February, triggering a supply shock — fell more than 3.5% at one point Thursday as traders assessed signals surrounding the conflict. The decline was later pared, but added to optimism that US inflation may have peaked.In Asia, the yen remained within striking distance of a key level against the dollar, even after Prime Minister Sanae Takaichi’s government was said to support an interest-rate increase. The Japanese currency was little changed early Friday, trading near 159.50 per greenback.The Bank of Japan is likely to raise rates in either September or October, according to people familiar with the matter. Concerns at the central bank that yen weakness will fuel inflation are converging with the government’s desire to reinforce the impact of recent US-Japan currency intervention, strengthening the case for a near-term hike, the people said.Corporate Highlights:Advanced Micro Devices Inc. raised $4.75 billion in its biggest-ever US dollar bond offering, adding to a wave of debt tied to the AI boom. Workday Inc. surged after a Reuters report that private equity firm Silver Lake is in talks to purchase the software provider. Hertz Global Holdings Inc. tumbled as Pershing Square Inc.’s chief investment officer said the asset management firm has sold its stake in the car-rental company. Cisco Systems Inc. projected $7.5 billion in sales tied to the AI data center boom this fiscal year, disappointing investors who’ve seen the world’s largest networking gear supplier amass $9.3 billion in artificial intelligence-related orders over the past year. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 7:06 a.m. Tokyo time Hang Seng futures fell 0.6% S&P/ASX 200 futures fell 0.4% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1530 The Japanese yen was little changed at 159.49 per dollar The offshore yuan was unchanged at 6.7449 per dollar The Australian dollar was little changed at $0.7060 CryptocurrenciesBitcoin rose 0.2% to $63,509.8 Ether rose 0.3% to $1,890.01 CommoditiesWest Texas Intermediate crude fell 0.2% to $81.05 a barrel Spot gold rose 0.1% to $4,355.78 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
