Australia's July core inflation came in stronger than expected, underscoring persistent price pressures in the economy and supporting the case for another rate hike. According to Sina Finance, the Australian Bureau of Statistics said the trimmed mean CPI rose 3.6% from a year earlier, above economists' forecast of 3.5%, while the core price index accelerated to 0.5% month on month from 0.3%.

The Reserve Bank of Australia aims for inflation to reach the midpoint of its 2% to 3% target range, a level it has not achieved in nearly five years. After the data, the Australian dollar briefly rose 0.2% to $0.7176, traders increased bets on further monetary tightening, and the stock market's gains narrowed. Market pricing implied a 78% chance of another rate hike before December, up from about 67% before the release. It was the last inflation reading before the next policy meeting in late September. Minutes from this month's meeting showed the Reserve Bank of Australia's rate-setting board had considered raising rates again to curb the risk of higher consumer prices, but it ultimately held steady for now while warning it would act if necessary.