Mumbai: Indian stock markets may extend gains on Thursday, tracking upbeat Asian peers. Investors will watch out for the Reserve Bank of India's monetary policy statement, due later in the day.

Asian stocks edged up in early deals on Thursday, after the US S&P 500 hit a record high overnight following encouraging economic data, even as investors kept a wary eye on the impact of the coronavirus outbreak.

The MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4%, while Japan's Nikkei rose 1.6% today.

On Wednesday, the S&P 500 had gained 1.13% to a record close of 3,334.69, while the Nasdaq Composite added 0.43% to touch 9,508.68, also a record high.

The ADP National Employment Report showed private payrolls jumped 291,000 jobs in January, the most since May 2015, while a separate report showed that the US services sector activity picked up last month. Both indicators suggest the economy could continue to grow moderately this year even as consumer spending slows.

Traders also cited unconfirmed reports of a possible vaccine breakthrough for the coronavirus as a trigger for Wednesday's stock rally, although they also said such a catalyst was also likely to be an excuse for short-covering.

The World Health Organization played down media reports on Wednesday of "breakthrough" drugs being discovered to treat people infected with the new coronavirus. Another 73 people on the Chinese mainland died on Wednesday from the virus, the highest daily increase so far, bringing the total death toll to 563, the country's health authority said on Thursday.

Statistics from China indicate that about 2% of people infected with the new virus have died, suggesting it may be deadlier than seasonal flu but less deadly than SARS.

Back home, the RBI is widely expected to maintain interest rates steady.

The finance ministry on Wednesday unveiled details of a new scheme that could fetch the exchequer part of the ₹9.32 trillion direct taxes under dispute and free up courts and tribunals crippled by prolonged litigation.

The government is likely to use part of its dividend from the Life Insurance Corporation of India (LIC) to infuse capital into the insurer and prepare it for its planned initial public offering (IPO), according to a Mint report. LIC’s equity capital stands at ₹100 crore, which needs to be increased in order to sell even a 10% stake.

Meanwhile, 10-year US Treasuries yield rose back to 1.653% from a five-month low of 1.503% set last Friday.

In the currency market, the safe-haven Swiss franc and the yen retreated. The Swiss franc eased to 0.9738 franc per dollar, having lost 0.4% on Wednesday.

The yen stepped back to 109.85 yen compared with a three-week high of 108.305 hit on Friday. The euro stood at $1.0998, having shed 0.4% in the previous session.

US West Texas Intermediate (WTI) crude gained 0.7% to $51.12 per barrel, extending its rebound from a 13-month low of $49.31 touched on Tuesday. Despite the increase, prices are down about 16% so far this year.

(Reuters contributed to the story)

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