Stocks are expected to open higher Thursday, as economists sort through a glut of U.S. economic reports.

The U.S. Labor Department reported producer prices fell 1.9% in April — the biggest decline in 56 years — after a gain of 1.5% in March. The core index, which excludes food and energy items, fell 0.9%, its biggest drop in a decade, after rising 0.7% in March. The size of the drop raises concerns about deflation.

There’s better news on the U.S. employment front. The Labor Department also reported that the number of first-time applications for unemployment benefits fell 13,000 to a five-week low of 417,000 in the week ending May 10, after falling by 28,000 a week earlier. The four-week moving average, which evens out weekly fluctuations, fell to a one-month low of 439,750.

Also Thursday, The U.S. Commerce Department said business inventories rose by 0.4% in March to a seasonally adjusted US$1.17 trillion, compared with a revised 0.7% gain in February. February inventories were previously estimated as a 0.6% increase.

In Canada, a boost in motor vehicle manufacturing, coupled with a price-driven rise in shipments of petroleum and coal products, contributed to a 1.4% increase in manufacturing shipments in March. In its monthly survey of manufacturing, Statistics Canada reported Thursday that shipments rose to $44.7 billion, the highest level since November 2000.

In the meantime, manufacturers continue to accumulate inventory. According to Statistics Canada, manufacturers’ inventories increased an additional 0.4% in March Following a 0.8% gain in February Inventories stand at $63.7 billion, the highest level in 18 months.

Asian-Pacific markets finished mixed Thursday, as losses on U.S. markets and SARS fears added to pressure in Japan and Taiwan, but stocks in Hong Kong and South Korea registered gains. Tokyo stocks closed 1.4% lower while Hong Kong shares ended slightly higher in thin trading amid buying in select banking and property blue chips.

In Europe, Frankfurt’s DAX index is up 5.02 points to 2931.05. London’s FTSE 100 has gained 12.5 points to 3987.5. In Paris, the CAC 40 index was is 4.47 points to 2966.3.

In earnings news, ING Groep NV said Thursday first-quarter net profit dropped 85% on investment losses, though investors were more worried about a weak performance by the Dutch bank and insurer’s key U.S. life-insurance operations.

Europe’s third-biggest insurer said first-quarter net profit fell to 167 million euros from 1.14 billion euros in the same period last year, following a 735 million euros write-down on stock market assets.

Back at home, a big charge for the shutdown of one of its Ontario parts plants dragged Magellan Aerospace Corp. to a big loss in the first quarter.

The company reported Thursday it lost $19.1 million or 30¢ a share for the three months ended March 31. Revenues fell 7.8% to $118 million.