U.S. producer prices were unchanged in July, below expectations for a 0.1% to 0.2% rise, while annual producer inflation slowed to 4.7% from 5.5%, adding to softer July CPI data and prompting markets to scale back expectations for a September Federal Reserve rate increase. Treasury yields and Japanese government bond yields eased, Asian equities headed for their strongest week in two months, and the Taiwan dollar strengthened on foreign inflows, while pricing gauges including CME FedWatch showed September hike odds falling to roughly 32% to 35% or a better-than-60% chance of a hold. Investors remained alert to inflation risks from elevated oil prices and Middle East tensions, as well as to the yen's approach to 160 per dollar, a level seen as testing the Bank of Japan and possible Tokyo intervention.