Hong Kong (AFP) – A global stocks rally extended into Asia on Thursday, with investors betting the European Central Bank will prolong its stimulus programme, while the positive mood helped lift riskier currencies.

With the economic outlook in Europe still looking fragile and political uncertainty gripping world markets, analysts expect the ECB will wind up its latest policy meeting with a pledge to continue its cash-pumping measures for another six months.

The speculation has helped refresh a waning global assets rally that began after Donald Trump’s US election win, which traders predict will usher in a time of huge spending, tax cutting and deregulation.

Such positive sentiment has propelled the Dow on Wall Street to successive records — and put it on course to hit 20,000 for the first time — while the S&P 500 also clocked up an all-time high Wednesday.

In early trade Hong Kong increased 0.9 percent and Tokyo ended the morning 0.8 percent up. Shanghai added 0.1 percent ahead of the release of Chinese trade data later in the day.

Seoul and Sydney each piled on more than one percent, while Singapore, Wellington, Taipei and Manila were also sharply higher.

“The market is optimistic that the ECB will extend its quantitative easing programme at current levels for a further six months,” Sharon Zollner, a senior economist in Auckland at ANZ Bank New Zealand, told Bloomberg News.

However, she also said: “There is a real risk of unpleasantness in European bond, equity and currency markets if Draghi doesn’t at least meet expectations.”

Japanese traders brushed off data showing the world’s number three economy grew slower than initially thought, with the government offering a glimmer of hope by revising up its forecasts for the first and second quarter of 2017.

On currency markets the dollar dipped against most of its peers, although expectations the Federal Reserve will ramp up interest rates next week are keeping it buoyant.

The greenback retreated more than one percent against the New Zealand dollar after an upbeat economic reading by the country’s central bank chief, who also said he did not foresee any fresh interest rate cuts.

Most other regional currencies — which have been hammered by the dollar in recent weeks — also performed well. The Australian dollar added 0.6 percent, South Korea’s won gained 0.9 percent and the Indonesian rupiah was 0.4 percent higher.

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: UP 0.8 percent at 18,649.03 (break)

Hong Kong – Hang Seng: UP 0.9 percent at 23,007.51 

Shanghai – Composite: UP 0.1 percent at 3,225.63

Euro/dollar: DOWN at $1.0750 from $1.0755 Wednesday

Dollar/yen: DOWN at 113.70 yen from 113.74 yen 

Pound/dollar: UP at $1.2634 from $1.2623

Oil – West Texas Intermediate: UP 16 cents at $49.93 per barrel

Oil – Brent North Sea: UP six cents at $53.06 per barrel

New York – Dow: UP 1.6 percent at 19,549.62 (close)

London – FTSE 100: UP 1.8 percent at 6,902.23 (close)