Asian stocks looked set to rebound on Thursday as global markets recovered after recent fears about Italy faded.

Futures tipped higher opens for markets in Australia and Japan: Nikkei futures traded in Chicago were up 0.98 percent compared to the index’s Wednesday close and Australian SPI futures were higher by 0.67 percent at the end of the previous session.

U.S. stocks closed higher as jitters over political turmoil in Italy receded on Wednesday: The Dow Jones industrial average rose 1.26 percent, or 306.33 points, to close at 24,667.78, the S&P 500 advanced 1.27 percent to 2,724.01 and the Nasdaq composite added 0.89 percent to finish at 7,462.45.

Relief in global markets came amid news that Italy’s interim prime minister, who had been appointed by President Sergio Mattarella, said possibilities had surfaced “for the birth of political government,” Reuters reported.

Global markets had been spooked earlier in the week by the possibility of fresh elections in Italy being fought over its role in the European Union and the euro zone.

The euro recovered to trade at $1.1663 at 6:58 a.m. HK/SIN, above the $1.15 handle seen during Asian trade on Wednesday. Meanwhile, the yield on Italy’s two-year bonds fell to 1.7 percent in the last session from 2.1 percent.

Yields on safe-haven U.S. Treasury bonds, meanwhile, rose amid the improvement in investor sentiment overnight. The yield on the benchmark 10-year U.S. Treasury note stood at 2.86 percent at the end of Wednesday.

In Europe, the pan-European Stoxx 600 added 0.3 percent and Italy’s FTSE MIB bounced 2.09 percent after falling for the prior five sessions.

Trade issues were also likely to weigh on investors’ minds after the White House announced earlier in the week that it would move forward on plans to subject some $50 billion in Chinese imports to tariffs. According to a Wall Street Journal report on Wednesday, China is “looking to line up other countries” against the U.S.

Here’s the economic calendar for Thursday (all times in HK/SIN):

• 7:50 a.m.: Japan industrial production
• 9:00 a.m.: China official manufacturing and non-manufacturing PMI
• 9:30 a.m.: Australia private capital expenditure
• 8:00 p.m.: India first-quarter GDP

— CNBC’s Sam Meredith contributed to this report.