The Australian stock market is higher on Thursday, tracking the overnight gains on Wall Street as well as higher commodity prices. Expectations of additional stimulus from the European Central Bank later in the day also boosted sentiment.
In late-morning trades, the benchmark S&P/ASX 200 Index is adding 31.20 points or 0.58 percent to 5,424.60, off the day's high of 5,432.40 earlier. The broader All Ordinaries Index is up 28.50 points or 0.53 percent to 5,395.90.
In the mining sector, BHP Billiton (BHP) is advancing more than 3 percent and Rio Tinto (RIO) is gaining 2 percent, while Fortescue Metals is lower by 2 percent.
Junior miner BC Iron is down almost 4 percent and Atlas Iron is lower by almost 3 percent. Gold and copper miner PanAust is edging up 0.4 percent, while gold miner Newcrest Mining is down 0.8 percent. Alumina is declining 2 percent.
Banking stocks are trading higher, with ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac (WBK) up in a range of 0.4 to 1 percent.
In the oil space, Woodside Petroleum is gaining more than 3 percent, while Santos is up 2.3 percent and Oil Search is adding almost 3 percent amid the rebound in crude oil prices.
Virgin Australia said it will remove fuel surcharges on flights to the U.S. and reduce fees on the trans-Pacific route by up to A$50 following the decline in crude oil prices since October. The company's stock is up more than 3 percent. Shares of rival Qantas Airways are edging lower by 0.9 percent.
Shares of packaging solutions provider Amcor are lower by more than 5 percent after the company said CEO Ken MacKenzie will retire from the role and leave the company after a decade at the helm. Amcor named current chief financial officer Ron Delia as the new CEO, who will take the reins after MacKenzie leaves at the end of the 2015 financial year.
Workforce provider Skilled Group has rejected a takeover bid from rival Programmed Maintenance Services Ltd, saying it undervalues the company. Skilled Group shares are down 3.7 percent.
Under the offer, Skilled shareholders were to receive 0.5032 Programmed shares plus A$0.25 per share in cash. Shareholders of each company would hold an equal 50 per cent stake in the new combined entity.
On the economic front, Australia will on Thursday see the results of an inflation forecast for January. In December, inflation expectations were for 3.4 percent.
Australia also will see November numbers for new home sales. In October, sales were up 3.0 percent on month.
In the currency market, the Australian dollar was trading lower against the U.S. dollar on Thursday, following the surprise rate cut by the Bank of Canada and on expectations of a huge stimulus package from the European Central Bank. In early trades, the local unit was trading at US$0.8089, down from US$0.8213 on Wednesday.
On Wall Street, stocks fluctuated over the course of trading on Wednesday but managed to end the session mostly higher amid optimism about Thursday's monetary policy announcement from the European Central Bank, with the bank expected to unveil additional stimulus.
Reports indicated that the ECB's Executive Board has proposed purchasing 50 billion euros worth of bonds per month until the end of 2016.
The Dow edged up 39.05 points or 0.2 percent at 17,554.28, the Nasdaq rose 12.58 points or 0.3 percent to 4,667.42 and the S&P 500 climbed 9.57 points or 0.5 percent to 2,032.12.
Meanwhile, the major European markets all moved to the upside on Wednesday. While the U.K.'s FTSE 100 Index surged up by 1.6 percent, the French CAC 40 Index advanced by 0.9 percent and the German DAX Index rose by 0.4 percent.
U.S. crude oil rebounded to end higher on Wednesday, ahead of the European Central Bank meet outcome on Thursday. Crude Oil futures for March delivery, the most actively traded contract, jumped $1.31 or 2.8 percent to settle at $47.78 a barrel on the New York Mercantile Exchange.
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