Stock markets around the world rallied and crude oil rebounded sharply after strong US economic data and hints from a US Federal Reserve policymaker that a September interest rate hike was unlikely.
All three major US indexes were up almost 2% and increased appetite for risk sent government bond prices and the Japanese yen down while the dollar advanced.
Annual US gross domestic product growth was revised to 3.7% from the 2.3% rate reported last month and last week's jobless claims fell more than expected.
New York Fed President William Dudley had said yesterday that arguments for a September rate increase "seem less compelling" than only weeks ago, given the threat posed to the US economy by recent market turmoil.
Markets around the world plunged earlier in the week as a slump in Shanghai shares fuelled worries over China's economic health.
While Beijing moved to ease policy late on Tuesday, stocks still ended weak that day, but Wall Street staged a strong comeback late Wednesday and its biggest daily gain in four years helped to calm investor nerves overseas.
The two main Chinese indices surged 5.3% and 5.9% overnight, snapping a five-day losing streak that had wiped around 20% in market value and sent tremors around global financial markets.
US Treasuries prices fell with most yields rising to one-week highs after the government upgraded its reading on second-quarter economic growth.
Dudley's comments came amid alarming market volatility and as investors watch the annual meeting of the world's top central bankers in Jackson Hole, Wyoming for clues on how the turmoil may shake up policy plans.
Emerging markets stocks and currencies rebounded with MSCI's benchmark emerging market stocks index up 3.1%.
The dollar advanced for a third consecutive session bolstered by gains in global equities as well as the US data.
Crude oil rocketed more than 6% in a snapback from a deep two-month slump as stock market rallies and news of diminished oil supplies drove a short-covering surge.
US crude futures were up 7.7% at $41.57 a barrel. The contracts had slumped to 6 year lows on Monday, dogged by a supply glut and China worries.
Brent rose 7% to $46.21.
