Regional stocks took the lead thanks to gains in financial worldwith Japan’s Nikkei up 0.5% by 0139 GMT and Australia’s benchmark stock index up 0.1%.
Mainland Chinese blue chips added 0.4%, although Hong Kong’s Hang Seng fell 0.3%.
U.S. S&P 500 futures rose 0.1% after the cash index advanced 0.4% on Wednesday, boosted by the slowest rise in the consumer price index in more than three years.
The dollar remained weak after slumping overnight to its lowest level against the euro since late last year. The single currency was trading unchanged at $1.1009 after hitting $1.10475 in the previous session. The 10-year Treasury yield edged up to 3.84% in Asian hours, after falling as low as 3.811% on Wednesday. Traders remain convinced the Fed will cut rates on Sept. 18 for the first time in four-and-a-half years, but are divided on whether policymakers will opt for a whopping 50-basis-point reduction. While inflation is slowing, signs it may remain sticky prompted a reduction in bets on a larger cut to 37.5% from about 50% a day earlier. A major macroeconomic test looms later on Thursday with the release of U.S. retail sales figures.
“If we were to see a negative retail control sales number, it would likely ring alarm bells, given recent market concerns about a US recession,” said Tony Sycamore, market analyst at IG.
The dollar held steady at 147.35 yen as the pair continued its week-long consolidation around the 147 mark.
Sterling remained depressed after weak UK inflation figures indicated faster and deeper rate cuts by the Bank of England. The currency held steady at $1.2824 after falling 0.3% on Wednesday.
The Australian dollar was trading at $0.6600, erasing early losses and rising slightly after a shaky reaction to rising employment.
Gold rose 0.1% to $2,449.60 an ounce after falling 0.7% on Wednesday.
Oil prices rose on Thursday, recovering some of the previous day’s loss, on hopes that possible Fed rate cuts will boost demand.
Brent crude futures added 0.2% to $79.93 a barrel, and U.S. West Texas Intermediate crude rose 0.3% to $77.21.
Both benchmarks fell more than 1% on Wednesday following an unexpected rise in U.S. crude inventories.
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