The prospect of low interest rates stretching into the future and firing up the global economy helped push stocks higher today, boosted the dollar and hit long-term bonds.
Catalyst for most moves on financial markets was the US Federal Reserve's statement last night that it expected US interest rates - currently at 45-year lows - to stay low for "a considerable period".
The Fed also gave a mixed message on the state of the US economy, worrying about deflation and the labour market but seeing signs of improvement.
Most investors, however, seemed to be banking on the continued low interest rate environment boosting US growth, which it is hoped will drag the rest of the world with it.
"The latest hint on how the US economy is faring will come later today when the US commerce department releases its July report on retail sales.
Analysts said the Fed had tried not to upset any particular financial market, where stocks have been recovering and bonds have been on a sharp sell off that is beginning to threaten recovery by fostering higher borrowing costs.
Equity markets were generally bolstered by the Fed's comments, which triggered a late rally on Wall Street.
The FTSE Eurotop 300 index was up 0.71 per cent, moving while the narrower DJ Euro Stoxx 50 index gained 0.75 per cent.
Earlier, Japan's Nikkei average ended up 1.96 per cent at 9,752.75. The TOPIX index put on 1.84 per cent to 951.76.
Bond markets, as might be expected, were mixed, with continued low interest rates boosting demand for short-term paper and prospects from recovering economies hurting long-term debt.
Benchmark 10-year Bund yields were 3.6 basis points higher at 4.11 per cent - near their highest level in a about a week. But the interest rate sensitive two-year Schatz yield was down 1.5 basis points at 2.48 per cent.
Currency traders also interpreted the economic outlook as good for the dollar.
It rose across the board, reaching 1-1/2 week highs on the euro. The dollar was up around a third of a per cent at 1.1247 per euro and 119.08.