Weak US consumer price index (CPI) data spurred a big bounce in risk assets as the dollar and Treasury yields tumbled.
The US annual inflation rate reading for October came in at 7.7%, down from 8.2% during the previous month and below market expectations of 7.9%.
It indirectly restored investors' confidence that the Federal Reserve (Fed) might slow down their monetary policy tightening.
Chase Investment Counsel President Peter Tuz commented, it gives a positive indication that the Fed's efforts in easing inflation are successful and that the tightening measures made by central banks are bearing fruit.
For now the market puts 85% forecast that the Fed will raise the rate by 50 basis points while 54% predict a 25 basis point increase for the next meeting after 4 times in a row to increase 75 basis points.
The streak, Wall Street closed on a positive note with the Dow Jones Industrial rising 3.7% while the S&P jumped 5.54% and the Nasdaq Composite jumped 7.35%.
European shares surged to an 11-week high close with the STOXX 600 up 2.75% and the MSCI index of global shares up 4.57%.
Asia's early morning trading session saw Japan's Nikkei 225 up 2.46%, Topix up 1.85%, South Korea's Kospi up 3%, Australia's S&P/ASX 200 up 2.65% and the MSCI Asia Pacific index up 0.21%.
On the opposite side, US Treasury yields were seen falling to a 5-week low with the benchmark 10-year note up 85/32 in price at a yield of 3.82% from 4.142% and the 30-year bond at 125/32 at 4.0519% from 4.319%.
Currency summary saw the dollar suffer its biggest daily decline since December 2015 with the greenback index down 2.3% while the Euro rose 2.07% to $1.028 with the Japanese Yen up 4.26% to $140.51.
