KUALA LUMPUR: Key regional markets are expected to advance on Thursday, March 11 after US stocks rose on hopes the economy recovery will pick up steam while at Bursa Malaysia, banks and plantations could lead the FBM KLCI to another fresh two-year high.

On Wall Street, bank and technology shares rose on hopes an improving economy will boost business activity and profits.

Financial firms led U.S. and European stock markets higher on Wednesday, with U.S. bank shares hitting a 16-month peak, while crude oil prices ended the day at an eight-week high, according to Reuters.

On Wall Street, the Dow Jones industrial average ended up just 2.95 points, or 0.03%, at 10,567.33, in a late push into positive territory. The Standard & Poor's 500 Index rose 5.16 points, or 0.45%, at 1,145.61. The Nasdaq Composite Index rallied for a fifth consecutive day, climbing 18.27 points, or 0.78%, at 2,358.95.

Stocks to watch on Thursday include semiconductor-related and chip component manufacturers stocks, tracking the gains on Nasdaq and following up from Wednesday. They include Eng Tek and MPI.

Also on the watch list are Gamuda Bhd, Telekom Malaysia Bhd and TRC Synergy Bhd.

Gamuda is buying a 60% stake in Vietnam's Tan Thang Company for US$82.8 million which has rights to undertake a property project in Ho Chi Minh City with an estimated gross development value (GDV) of RM6 billion.

Its unit, Gamuda Land (HCMC) Sdn Bhd was buying the stake from Sai Gon Thuong Tin Real Estate Joint Stock Company (Sacomreal).

Telekom Malaysia will officially launch its much awaited high-speed broadband (HSBB) retail service in an event at Dataran Merdeka here on March 24.

Meanwhile, banks have not raised fixed deposit (FD) rates as much as expected, although increases in base lending rates (BLR) have been largely in line following Bank Negara Malaysia's overnight policy rate (OPR) hike by 25 basis points to 2.25% last week.

TRC Synergy Bhd's unit secured a RM45.98 million project for a container terminal at in Port Klang. The tender was awarded by Northport.