Stocks inched higher in Asia on Thursday, tracking muted gains on Wall Street overnight even as the Federal Reserve signaled an optimistic view of the U.S. economy. Many investors retreated to the sidelines ahead of President Donald Trump's nomination for the Federal Reserve's next leader. Trump is likely to tap Fed governor Jerome Powell as the next chairman of the central bank, according to a person familiar with the matter.

European stocks posted their highest close in more than two years Wednesday, boosted by resource stocks after solid Chinese manufacturing data and car makers following strong U.S. sales figures. The Stoxx Europe 600 index SXXP, +0.39% climbed 0.4% to 396.77, for its highest close since August 2015, according to FactSet data.

U.S. stocks mostly closed higher Wednesday, with the Dow and the S&P 500 ending near record levels after the Federal Reserve stood pat on interest rates but referred to the U.S. economy in positive terms. The central bank, in its statement following a two-day meeting, said economic activity has been picking up at a "solid rate," versus the "moderate" rate that it had referenced in September.