Dovish comments from U.S. Federal Reserve Chairman Ben Bernanke sparked a sharp rally across financial markets on Thursday, as relief followed weeks of jitters that the central bank could take back some of its hefty monetary stimulus soon.
Speaking at a conference on Wednesday, Bernanke said the U.S. economy continues to need a highly accommodative monetary policy.
This had an immediate impact on asset prices that have fallen sharply on Fed tapering fears. Gold prices jumped more than 2 percent to around $1,289, their highest level in more than two weeks and the 10-year Treasury yield fell to around 2.59 percent in Asia from around 2.67 percent in late New York trade – about 17 basis points below a two-year peak hit in the wake of Friday's strong U.S. jobs data.
The U.S. stock futures, meanwhile, point to a firm opening for Wall Street shares, which were closed when Bernanke made his comments.
"I don't see any reason why we would have a bear trend in U.S. stocks if the Fed stays in the game and they've just indicated that they are going to," said Anthony Scaramucci, managing partner at SkyBridge Capital in New York. "I don't see the Fed doing anything to upset this fragile global recovery," he added.
(Read More: What Recovery? Capital Spending in Decline)