Overnight the Nasdaq (.IXIC) jumped 2.4%, bonds surged and the dollar slumped more than 1.6% on the euro.
Yields fall when bond prices climb.
In foreign exchange trade, the dollar suffered its heaviest selling in 12 months, with the sharpest losses against risk-sensitive currencies such as the Australian dollar.
In Japan, the Bank of Japan stepped back and pared its regular bond buying as markets rallied.
Ten-year Japanese government bond yields hit a one-month low of 0.775%.
Persons:
Androniki, Sam Rines, Chetan Seth, Brent Donnelly, Tom Westbrook, Edmund Klamann
Organizations:
Nikkei, REUTERS, Nasdaq, Federal, CPI, Japan's Nikkei, New Zealand, Nomura, Bank of Japan, Thomson
Locations:
Tokyo, Japan, SINGAPORE, Asia, Pacific, Texas, U.S, Canada