Go to System Preferences > Accessibility > Mouse and Trackpad
Turn off "Enable Mouse Keys" button. Your 10-key is working, it's just moving the pointer around pixel-by-pixel, instead of inputting numbers. You're looking at the cursor while your pointer is doing its rendition of Riverdance.
Switching on and off a lot of stuff in here will improve performance on input peripherals, including the Magic Mouse. For example, the setting to ignore the built-in trackpad when you have an external pointer attached to the system is in here. Because of course you wouldn't want that under Trackpad or Mouse where it's been forever, and where one would logically go looking for it.
Monkeying around in here will also fix a problem that is in Yosemite, if not earlier, where your pointer won't budge on the trackpad, or only moves up and down on the screen. Well, it doesn't FIX it. It just patches it for a while until you install a font while Safari is open, after which you may need to shut everything down, repair permissions, and reboot.
Because Safari really, really needs access to each and every font you install on the system.