Asian stocks hovered below seven-month highs on Thursday, as investors waited to see whether U.S. data will confirm inflation is in retreat, while the yen rose with a report Japan will next week review the side-effects of its ultra-easy policy.
Following gains for Wall Street indexes overnight, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) climbed to a seven-month high in morning trade, before easing back to flat by lunchtime in Hong Kong.
Japan's Nikkei (.N225) was steady, as were S&P 500 futures . European futures rose 0.4%. Bonds held overnight gains and the U.S. dollar was pinned near a seven-month low at $1.0769 per euro .
Due at 1330 GMT, economists expect the rise in core U.S. consumer prices (USCPFY=ECI) slowed to an annual pace of 5.7% in December, from 6% a month earlier. Month-on-month headline inflation is seen at zero (USCPI=ECI).
"(It) is the CPI number that could help settle the debate for the February meeting," said NatWest Markets' U.S. rates strategist Jan Nevruzi.
"We expect a below consensus CPI print, which if it materialises, could push this rally even further."
Boston Federal Reserve bank leader Susan Collins also helped things, remarking to the New York Times that she was leaning towards a 25 basis point hike.
Optimism for a more benign rates outlook and a pickup in demand as China emerges from strict COVID restrictions also drove oil prices sharply higher to one-week peaks.
Brent crude futures topped $83 on Thursday. U.S. Treasuries added a little to overnight gains, with benchmark 10-year yields down 3.7 bps to 3.5189% and 30-year yields down 4.4 bps to 3.6375%.
