U.S. President Donald Trump's stunning decision to pause the hefty duties he had just imposed on dozens of countries sent battered global stock markets surging on Thursday even as he ratcheted up a trade war with the world's No. 2 economy China, Reuters reported.

Trump's turnabout on Wednesday, which came less than 24 hours after steep new tariffs kicked in on most trading partners, followed the most intense episode of financial market volatility since the early days of the COVID-19 pandemic.

The upheaval erased trillions of dollars from stock markets and led to an unsettling surge in U.S. government bond yields that appeared to catch Trump's attention.

"I thought that people were jumping a little bit out of line, they were getting yippy, you know," Trump told reporters after the announcement, referring to jitters sportpeople sometimes get.

U.S. stock indexes shot higher on the news, with the benchmark S&P 500 (.SPX), opens new tab index closing 9.5% higher. Bond yields came off earlier highs and the dollar rebounded against safe-haven currencies, according to Reuters.

The relief spread through Asian markets as they opened on Thursday with Japan's Nikkei index (.N225), opens new tab surging 8% while European futures also pointed to a sharp rebound. Even Chinese stocks rose, propped up by hopes of state support, although its yuan currency fell to the lowest level since the global financial crisis.