Asian stocks rise as US inflation data dents September Fed hike bets

Against the yen, the dollar softened 0.06% to 159.32, amid growing speculation that the Bank of Japan would hike interest rates next month, earlier than the previously expected December timeline. Those expectations were reinforced by Japan's wholesale prices, which rose 7.2% in July from a year earlier, highlighting broadening price pressures.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was steady at 99.93.

The yield on benchmark U.S. 10-year notes rose 0.62 basis points to 4.688%, from 4.682% late on Wednesday.

Reserve Bank of Australia Assistant Governor Christopher Kent said the three cash rate increases earlier this year were having their intended effects and would, over time, discourage spending.

Speaking at a Reuters NEXT Newsmaker event in Sydney, Kent said it would take "some time for tighter monetary policy to have its full effect on economic activity and inflation."