CANBERA (dpa-AFX) - Asian stock markets are higher on Thursday, following the record gains overnight on Wall Street and on expectations that the European Central Bank will extend its asset purchase program at its monetary policy meeting later in the day.
The ECB is widely expected to leave interest rates unchanged for a sixth straight session and also extend its asset purchase program beyond March of 2017 amid the recent political turmoil in Europe following the referendum in Italy.
The Australian market is rising, with banks and miners are among the leading gainers.
In late-morning trades, the benchmark S&P/ASX 200 Index is advancing 56.00 points or 1.02 percent to 5,534.10, slightly off a high of 5,535.40 earlier. The broader All Ordinaries Index is adding 55.70 points or 1.01 percent to 5,591.10.
The major miners are advancing after iron ore prices rose more than 3 percent overnight. BHP Billiton is adding more than 1 percent, Rio Tinto is gaining almost 4 percent and Fortescue Metals is higher by more than 3 percent.
In the banking space, ANZ Bank, Commonwealth Bank, Westpac and National Australia Bank are higher in a range of 0.8 percent to almost 2 percent.
In the oil sector, Woodside Petroleum is adding 0.6 percent, while Oil Search and Santos are advancing more than 1 percent each.
Santos has provided details about a turnaround plan that includes spinning off its second-tier assets into a separate business and cutting debt sharply over the next three years.
Gold miner Newcrest Mining is down 0.5 percent, while Evolution Mining is rising more than 1 percent.
Fairfax Media confirmed speculation it has been approached by a third party about the acquisition of its New Zealand media business, which it plans to merge with rival NZME. Fairfax Media's shares are rising almost 2 percent.
Bellamy's Australia has received a query from the ASX over its surprise December 2 trading update that trimmed more than A$500 million from its market value. However, the infant formula maker's shares are advancing almost 3 percent.
Insurance Australia Group said it plans to cut about A$250 million in operational costs over the next three years as part of its strategic plan. Shares of the insurer are gaining almost 4 percent.
In economic news, the Australian Bureau of Statistics said that Australia had a seasonally adjusted merchandise trade deficit of A$1.541 trillion in October. That was well shy of forecasts for a deficit of A$610 million following the downwardly revised A$1.272 trillion shortfall in September.
In the currency market, the Australian dollar rebounded against the U.S. dollar on Thursday. In early trades, the local unit was trading at US$0.7477, up slightly from US$0.7434 on Wednesday.
The Japanese market is notably higher despite a stronger yen. Investors also shrugged off weaker-than-expected economic data.
In late-morning trades, the benchmark Nikkei 225 Index is adding 167.46 points or 0.91 percent to 18,664.15, off a high of 18,733.58 earlier.
The major exporters are mixed. Canon is advancing almost 5 percent and Sony is rising almost 2 percent, while Panasonic is declining 0.8 percent and Toshiba is down 0.3 percent.
Automaker Toyota is adding more than 1 percent and Honda is up 0.6 percent. Fast Retailing is rising 0.5 percent.
In the oil space, Inpex is adding almost 1 percent and JX Holdings is advancing almost 2 percent.
Among the other major gainers, Tokyo Electric Power is gaining more than 8 percent, SoftBank is rising almost 7 percent and Fujitsu is higher by more than 6 percent. On the flip side, Shionogi & Co. is down almost 4 percent and Sumitomo Dainippon Pharma is losing more than 3 percent.
In economic news, the Cabinet Office said in Thursday's final reading that Japan's gross domestic product was revised down to 0.3 percent on quarter in the third quarter of 2016. That missed expectations for 0.5 percent, which would have been unrevised from the November 14 preliminary reading.
The Ministry of Finance said that Japan had a current account surplus of 1.719 trillion yen in October, rising 22.7 percent on year. The headline figure exceeded expectations for a surplus of 1.545 trillion yen following the 1.821 trillion yen surplus in September.
The Bank of Japan said that overall bank lending in Japan was up 2.4 percent on year in November, coming in at 504.480 trillion yen. That was beneath expectations for 2.5 percent, but unchanged from the previous month's reading.
In the currency market, the U.S. dollar traded in the upper 113 yen-range on Thursday.
Elsewhere in Asia, Shanghai, South Korea, New Zealand, Singapore, Hong Kong, Indonesia, Malaysia and Taiwan are also in positive territory.
On Wall Street, the Dow and the S&P 500 once again reached new record closing highs as traders looked ahead to the European Central Bank's monetary policy announcement on Thursday.
The Dow soared 297.84 points or 1.6 percent to 19,549.62, the Nasdaq jumped 60.76 points or 1.1 percent to 5,393.76 and the S&P 500 surged up 29.12 points or 1.3 percent to 2,241.35.
The major European markets also showed strong moves to the upside on Wednesday. While the French CAC 40 Index surged up by 1.4 percent, the U.K.'s FTSE 100 Index and the German DAX Index jumped by 1.8 percent and 2 percent, respectively.
Crude oil prices declined Wednesday amid lingering worries over whether the planned output cuts by the OPEC and Russia would halt oversupply in the market. WTI crude fell $1.16 or 2.3 percent to $49.77 per barrel on the New York Mercantile Exchange.
Copyright RTT News/dpa-AFX