US stocks are well off the top but were still comfortably in credit in lunchtime trading after some encouraging economic data.
Durable goods orders for July showed a seasonally adjusted rise of 2.0%, when economists had been expecting a 0.6% decline.
"China’s injection of fresh liquidity has been seen as a positive move, as the PBoC looks to build on yesterday’s rate cut," saif Chris Beauchamp, at spread betting firm IG.
The Chinese central bank is said to be preparing to inject 140bn yuan into the country's financial sector, topping up last week's 120bn yuan injection.
"US durable goods were much stronger than expected this afternoon, proving once again that the US economy remains a touchstone of reliability in these troubled times.
"Fed member William Dudley added further to the general atmosphere of optimism with suggestions that a September rate hike was now much less likely.
"Equity bulls on Wall Street now need to maintain momentum and avoid another sharp drop towards the end of the session similar to the one seen last night, or risk handing the initiative back to the bears," Beachamp suggested.
The Dow Jones was up 188 points at 15,854, the S&P 500 was 13 points better at 1,881 and the Nasdaq Composite was 25 points to the good at 4,532 shortly after one o'clock.
Abercrombie & Fitch (NYSE:ANF) shares were on investors' shopping list after the teen apparel retailer reported a surprise adjusted profit and better-than-expected sales in its fiscal second quarter, buoyed by demand for Hollister and Abercrombie kids brands.
Shares climbed 10.3% to US$19.03.
Sector peer Express (NYSE:EXPR) has raised its full-year outlook after a record second quarter sales performance.
Shares were up 15.3% to US$19.42 after the company revealed like-for-like (LFL) sales growth of 7% in the thirteen weeks to 1 August, the second quarter of the company's financial year.
Footwear maker Nike (NYSE:NIKE) was wanted, after it was upgraded by Susquehanna. The shares trotted 1.4% higher to US$105.03.
In mergers & acquisition news, Monsanto (NYSE:MON) has been sent away with a flea in its ear by Swiss rival Syngenta after making a bid approach, and has revealed that it is no longer pursuing a takeover.
The shares reacred positively to the rebuff, sprouting 7.9% higher to US$96.46.
Shares in Cameron International (NYSE:CAM) gushed higher, after the maker of flow equipment for the energy industry succumbed to an agreed bid from oilfield services titan Schlumberger (NYSE:SLB) worth around US$68.36 a share.
Shares advanced more than 40% to US$59.75.
Elsewhere in the oilfield support services sector, Transocean (NYSE:RIG) sank 6.8%, a day after the world’s top offshore rig operator said it planned to cancel its next two dividend payments and take write-downs of more than US$2.1bn.