The stock market continues to rally on the bullish momentum generated from favorable central bank policies from the U.S. and Japan.

The S&P 500 Index is up 6.86 points, or 0.59 percent, to trade at 1,166.32 at 11:34 a.m. EST. The Dow Jones Industrial Average is up 49.13 points, or 0.46 percent, to trade at 10,735.11. The Nasdaq Composite is up 0.57 percent.

Asian markets closed up, with the Hong Kong Hang Seng closing up 1.72 percent and the Japanese Nikkei 225 closing up 1.17 percent. European indices are also trading up.

During the Asian session, Japan's central bank announced that it would leave interest rates unchanged at 0.1 percent. It also doubles the size of its bank lending program to $220 billion.

The Bank of Japan as one of the few central banks still taking action to increase the amount of liquidity.

On Tuesday, the Federal Reserve announced that it would leave interest rates unchanged and expected to keep it at the current level for an extended period, citing low rates of resource utilization and subdued inflation trends.

Investors generally cheered the news that the U.S. is not likely to aggressively tighten in the near future and Japan is actually increasing the level of liquidity in its system.

A report from the Department of Labor showed that producer prices in the U.S. fell 0.6 percent in February. The decline was more than expected and confirms the Fed's assessment that inflationary pressures are low.