WORLDWIDE: HEADLINES 

Asian Currency Bears Retreat As Inflation View Improves – Reuters Poll 

Bearish bets on emerging Asian currencies eased on hopes that monetary tightening will cool red-hot inflation, with short bets on the Thai baht falling sharply after the first rate hike in the country in nearly four years, a Reuters poll found. 

Short positions on all emerging Asian currencies fell, with bets on China’s yuan at their lowest since late-April, according to the fortnightly poll of 12 analysts. 

Short bets on the Philippine peso, the Singapore dollar and the Indonesian rupiah also fell to multi-month lows. 

An unchanged U.S. inflation print for July, the first notable sign of relief after persistently rising prices, also helped improve the sentiment in the region. 

Full coverage: REUTERS 

China Property Firm Apologises For High Vacancy Rate Report 

A Chinese property think tank owned by KE Holdings apologised on Thursday for sparking a “heated public discussion” with its report on rising housing vacancy rates in China, and that its assessment may not be sufficiently accurate. 

The apology comes at a time when policymakers are urging banks to extend loans to property firms and local governments are relaxing downpayment rules for home purchases as sales and confidence sag amid deteriorating macroeconomic conditions. 

A growing debt crisis in the real estate sector, which accounts for a quarter of the world’s second-largest economy, has also raised risks of social instability. 

Beike Research Institute on Aug. 5 published a report after conducting a survey warning of oversupply in China’s property market due to high rates of unoccupied homes in major Chinese cities. 

Full coverage: REUTERS 

WORLDWIDE: HEADLINES 

Asian Shares Join Global Rally On Softer-Than-Expected U.S. Inflation 

Asian shares extended a global rally on Thursday after softer-than-expected U.S. inflation data encouraged bets of less aggressive rate hikes from the Federal Reserve, while the dollar struggled for footing after its biggest plunge in five months. 

U.S. consumer prices were unchanged in July compared with June, when they rose a monthly 1.3%. The July result was lower than expectations due to a sharp drop in the cost of petrol, causing markets to reposition on hopes that inflation was peaking. 

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) surged 1.4% to the highest in six weeks, buoyed by a 1.8% jump in Hong Kong (.HSI), a 1.2% advance in South Korean shares (.KS11) and a 1.5% gain in China’s blue chips (.CSI300). 

The risk-on sentiment is set to continue in Europe when markets open, with the pan-region Euro Stoxx 50 futures last up 0.4%. The S&P 500 futures rose 0.2% and Nasdaq futures gained 0.3%. 

Full coverage: REUTERS 

Dollar Struggles To Regain Inflation-Induced Losses 

The euro and Japanese yen held onto most of their overnight gains on Thursday, having been boosted by U.S. inflation data coming in less hot than feared and sending the dollar tumbling. 

The European common currency was trading at $1.0285, with its 0.14% loss on the day, though it came after a 0.84% jump on Wednesday – its biggest daily percentage gain since mid-June. 

Similarly one dollar was worth 133.15 yen up 0.2% on Thursday, after a 1.6% tumble the previous day . 

The dollar plunged overnight after U.S. consumer prices were unchanged in July compared with June, when prices rose a monthly 1.3%. The July result was lower than expectations due to a sharp drop in the cost of petrol, causing markets to reposition on hopes that inflation was peaking. 

Full coverage: REUTERS  

Oil Edges Lower As Supply Disruption Concerns Ease 

Oil prices drifted lower on Thursday after gaining more than $1 in the previous session, as concerns over supply disruptions eased and markets looked for evidence of improving fuel demand. 

Brent crude futures dipped 7 cents, or 0.1%, to $97.33 a barrel by 0642 GMT, while U.S. West Texas Intermediate crude futures fell 9 cents, or 0.1%, to $91.85. 

Oil is struggling to find direction, suggesting investors have not reached a consensus on the outlook for supply and demand, analysts from Haitong Futures said. 

U.S. crude oil stocks rose by 5.5 million barrels in the most recent week, the U.S. Energy Information Administration said, more than the expected increase of 73,000 barrels. 

Gasoline product supplied rose in the most recent week to 9.1 million barrels per day, though that figure still shows demand down 6% over the past four weeks compared with the year-ago period. 

Full coverage: REUTERS