North American stocks are expected to climb at Thursday’s open, shaking off yesterday’s declines.

In today’s economic news, U.S. housing starts fell 8.9% during December as slowing sales, rising inventories and higher costs made builders more cautious.

Meanwhile, U.S. initial jobless claims fell by 36,000 last week.

Here at home, Statistics Canada reported that Foreign investment in Canadian securities reached its highest level for 2005 with non-residents purchasing $5.4 billion worth in November.

Investment in foreign securities continued in November as Canadians acquired $2.3 billion worth.

The Canadian dollar opened at US84.85¢, down 0.57 of a cent.

In earnings news, Merrill Lynch’s profit rose 25% to a record $1.5 billion, the latest Wall Street brokerage firm to benefit from strong advisory and underwriting businesses. Loan growth lifted Wachovia’s net by 18%

Pfizer’s earnings fell 3.3% as weaker sales of Celebrex and Viagra, and increased competition from generic drugs, drove sales down 8.9%. Novartis reported flat earnings, hurt by one-time costs.

In overseas trading, Tokyo’s benchmark Nikkei 225 index jumped 355.1 points, or 2.31%, to 15,696.28 points .

Investors snapped up technology and Internet-related stocks that were dumped during the big sell-off in the previous two days when the index plunged 6%. The jitters were caused by an investigation of possible corruption at Internet startup Livedoor Co.

In Hong Kong, the blue-chip Hang Seng Index rose 189.21 points, or 1.22%, to 15,670.42.

Toronto stocks plunged to their lowest closing level in two weeks on Wednesday as energy issues took a hit from lower crude prices.

The S&P/TSX composite index fell 135.12 points, or 1.16%, to 11,554.49.

The energy sector fell 1.96%, while the materials group, fell 1.94%. All 10 of the TSX major groups ended down.

The junior S&P/TSX Venture composite index shed 16.16 points, or 0.68%, to end at 2,376.10.

In New York, weaker than expected earnings in the technology sector sparked a second day of selling.

The tech-heavy Nasdaq composite index fell 23.05 points, or 1%, to 2,279.64.

The Dow Jones industrial average dropped 41.46 points, or 0.38%, to 10,854.86, and the S&P 500 index lost 5.00 points, or 0.39%, to 1,277.93.