For the first time, the benchmark gauge Dow Jones Industrial Average hit over the 16,000 psychological threshold on Thursday, indicating that an already 22% stock rally would continue to extend this year.

The index rose 109.17 points (which is 0.69 cent) to a new closing high of 16,009.99. The biggest gainer was Intel, which jumped 2.7 per cent after the company's chief executuve said the personal computer market showed signs of stabilization.

Banking stocks also did perform well, including Dow component JPMorgan Chase up by 2%, Bank of America up by 3% and Citigroup, which was up by 1.9%.

A south China Morning Post report attributed the increase to positive economic data such as a better US housing market and a drop in weekly US jobless claims.

"There's a bias towards the upside. When prices fall, there's somebody stepping in to buy," said David Levy, portfolio manager at Kenjol Capital Management.

Weaker earning outlook was more for Tobacco firm Philip Morris which sank 3%. Also facing the same scenarior is discount retailer Target, which sank 3.5% after reporting a 46 % drop in earnings due to the fact that it spent heavily with its launch of more than two dozen Canadian stores during the quarter.