The Fed move added to efforts by central banks around the world to combat the outbreak, which observers say will likely cause a global recession.
As the death toll from the Chinese epidemic jumped to 80 with those affected worldwide approaching 3,000, analysts say there are growing fears the crisis could become as bad as the SARS outbreak that hammered Asian markets in 2003.
Tokyo Olympic organisers and government officials are preparing for everything including an earthquake taking place during next year's games, as all these increasing the budget of the games.
Yields on benchmark 10-year Treasury notes dropped to their lowest since mid-2016 as the latest salvos in the China-US trade war shook confidence in the world economy and sent investors to the safe harbour of gold.
Also boosting investor sentiments were comments from China that the Washington and Beijing held discussions on trade overnight and would talk again the next two weeks.
Investor anxiety has been fed by President Donald Trump's threat of new US tariff hikes on Chinese goods, protests in Hong Kong and weaker-than-expected data from India, Argentina and Singapore.
China let its yuan weaken below 7 to the dollar, an 11-year low, as the escalation in the US-China trade war shook currency markets.
Japanese stocks plunged Tuesday and other Asian markets declined following heavy Wall Street losses triggered by Trump's attack on the US central bank and political chaos in Washington.
Asian shares fell Friday following a report that the Trump administration could put tariffs on $200 billion in Chinese goods as early as next week.
While palpable, relief over a US-Mexico trade deal was dimmed by concerns that the China-US trade war will drag on for some time.
Markets in China, Japan, Australia and South Korea all declined while the Japanese yen rose against the dollar as currency traders looked for a safe haven.
Tokyo, Hong Kong and Shanghai were among the worst hit as they plunged between three and four percent, while investors piled into safe haven assets such as gold and the yen.
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