Asian stocks extended their rebound from a two-month low on Thursday after a report on U.S. consumer prices calmed concerns about inflation and lifted the Dow Jones Industrial Average to a record close.

An index of regional stocks excluding Japan rose 1.7%, led by a 2.3% surge in South Korea’s Kospi, and was on track for its first three-day advance in three weeks.

China’s Shanghai Composite rallied 1.9%, helped by strong local lending data, while Japan’s Nikkei 225 gained 0.5%. E-mini futures for the U.S. S&P500 rose 0.5% .

Relative calm in the Treasuries market also helped risk sentiment, with the benchmark yield settling at around 1.5% after shooting to a one-year high above 1.6% last week as investors worried about the U.S. economic recovery running too hot.

“The market took a bit of relief from this consolidation in rates,” said Masahiko Loo, a Tokyo-based portfolio manager at AllianceBernstein.

“The vaccine optimism is still there. People are coming back into the workforce. If you add everything up — and the bond market is not being disruptive — it’s providing more incentive for investors to buy equities.”

Europe looked set to continue the global rally with Euro Stoxx 50 futures 0.2% higher after the index touched a more than one-year top on Wednesday.

The European Central Bank is likely to signal faster money printing to keep a lid on borrowing costs, although it will stop short of adding firepower to its already aggressive pandemic-fighting package.

Britain’s FTSE futures rose about 0.4%. MSCI’s gauge of stocks across the globe gained 0.28%.

The U.S. Labor Department said its consumer price index rose 0.4% in February, in line with expectations, after a 0.3% increase in January. Core CPI, which excludes volatile food and energy components, edged up 0.1%, just shy of the 0.2% estimate.