Asian stocks rose on Thursday after U.S. consumer prices increased 0.1 per cent in July, in line with expectations, dimming the case for a Federal Reserve rate hike next month. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.97 per cent, led by South Korean shares jumping 4.4 per cent. Money markets now predict a 40 per cent chance of a September rate hike, down from 54 per cent a week ago, according to CME Group's FedWatch.

Oil held near $80 a barrel as Washington and Tehran remained deadlocked over efforts to end the Gulf war. U.S. crude fell 0.83 per cent to $82.58 a barrel and Brent fell to $88.35 a barrel. Iran and the U.S. remained at loggerheads over efforts to agree a permanent end to the war, with talks to revive a June interim agreement making no headway, a senior Iranian source said, Channel NewsAsia business reports.