Oil edged lower on Thursday after reports gained traction that the United Arab Emirates had released another tranche of Iran's frozen assets held in Emirati banks, including gold reportedly worth about $212 million, transferred on August 11 and 12. If accurate, it would be the third such release by the UAE government, although the claim has not been widely corroborated. Iran has had billions of dollars in assets frozen across foreign jurisdictions under international sanctions tied to its nuclear program, and periodic releases have occurred against a backdrop of fluctuating diplomatic engagement between Tehran and its Gulf neighbors. The reports contributed to a modest easing of oil prices, as any reduction in sanctions-related financial friction for a major OPEC producer can influence expectations around supply stability.

In Japan, July producer prices remained elevated at 7.2% year on year, below the 7.4% forecast but still high by historical standards. A 29.1% jump in yen-denominated import prices kept imported inflation pressure firmly in place, reinforcing the case for a Bank of Japan rate hike in September even with the headline reading missing expectations. Producer prices are a leading input into consumer inflation, and the persistent cost-push pressure from import costs has been a key metric the BOJ is monitoring as it continues normalizing monetary policy following its historic exit from negative interest rates in March 2024.

The dollar posted modest gains, while both the Australian dollar and New Zealand dollar softened.

The Australian dollar came under pressure after remarks from Reserve Bank of Australia Assistant Governor Christopher Kent, which market participants interpreted as more dovish than hawkish despite the mixed tone of his comments. Kent said cash rate increases are having their intended effect, with policy near the top of neutral estimates and housing market conditions softening. He also said inflation risks still lean to the upside and that further rate increases remain possible. Kent noted that substantial AI-related investment continues to support aggregate demand, flagged weak productivity growth as complicating the inflation outlook, and described valuations in some equity markets as very generous. The RBA has held its cash rate at a 12-year high of 4.35% since November 2023, and Kent's remarks did little to shift the balance toward a near-term hike.

The New Zealand dollar also drifted lower after the Reserve Bank of New Zealand's third-quarter inflation expectations survey showed a sharper-than-expected pullback. One-year inflation expectations fell to 2.6% from 3.4% in the second quarter, while two-year expectations eased to 2.3% from 2.5%. The softer readings trimmed expectations for a rate hike at the RBNZ's next scheduled decision on September 2. The RBNZ has held its official cash rate at 5.25% since May 2023, and cooling inflation expectations increase the likelihood that the bank may begin signaling a more neutral or even easing stance.

Asian equities extended a rally driven by strength in US chip stocks. Japan's Topix climbed to a record high, and the Nikkei rose around 1.6%, tracking a sharp overnight advance in the Philadelphia Semiconductor Index. South Korea's Kospi surged about 4% as foreign investors bought heavily in Samsung Electronics and SK Hynix. The semiconductor sector has been a primary beneficiary of surging global investment in AI infrastructure, with demand for advanced memory and logic chips lifting earnings expectations across the supply chain. The Philadelphia Semiconductor Index, which tracks major US-listed chip companies, has been the best-performing major sector benchmark in 2024, and its overnight gains cascaded into Asian markets where many of the region's largest listed companies sit on critical nodes of the global chip supply chain.

In corporate news, the Wall Street Journal reported that Apple is in talks with publishers over multiyear content deals to provide current news and information for its AI-powered Siri overhaul. The report said Apple has proposed a variable, pay-as-used compensation structure and could spend a nine-figure budget on the arrangement. The publisher talks follow Apple's unveiling of its Apple Intelligence platform at its developer conference in June 2024, which includes deeper integration of generative AI across its devices, and securing real-time content from publishers would be a step toward keeping Siri competitive with AI assistants from Google and OpenAI.

Separately, Ford Motor said it plans to shift production of some Lincoln models from China to the United States starting in 2030. Chief executive Jim Farley told Reuters that a 52.5% US tariff on the China-built Lincoln Nautilus was the main driver behind the move. The US maintains Section 301 tariffs on Chinese-manufactured vehicles that were originally imposed during the Trump administration and have continued under President Biden, with both administrations signaling support for policies that discourage reliance on China-based automotive production.

The Wall Street Journal also reported that more than 40 S&P 500 companies have booked about $9.6 billion in tariff refunds in recent months, with some firms, including FedEx and Costco, saying they plan to pass at least part of those savings on to customers. The refunds stem from a legal challenge to the List 3 and List 4A tariff rates that resulted in court-ordered repayments, and the windfall arrives as companies navigate an evolving trade-policy landscape ahead of the US presidential election.