US equities closed near session highs, with S&P 500 futures extending their gains during Asian trading as South Korea's KOSPI surged more than 15%, according to Commerzbank Research.
Treasuries gained, with longer-term yields falling more than shorter-term yields, said the bank.
The US dollar advanced, while the yen weakened even as speculation of government intervention intensified, wrote Commerzbank in a note. Japanese government bonds ended mixed as the Bank of Japan held interest rates steady and revised its growth forecast higher.
In Asia, China's official manufacturing PMI fell 1.1 points to 49.2 in July, a much larger decline than expected. Meanwhile, Japan's Tokyo consumer price index increased more than expected, signaling firmer inflation, added the bank.
China's Vice Premier He Lifeng voiced "serious concerns" over US restrictive measures in talks with Treasury Secretary Scott Bessent and other officials, according to Xinhua news agency.
Brent crude fell below $88 a barrel, said Commerzbank.