Chinese shares higher on back of global rebound

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Media captionThe BBC's Carrie Gracie: "The crash leaves China's new middle class uncertain where to put their money"

Chinese shares have closed 5% higher after massive losses there earlier in the week rocked markets around the globe.

The Shanghai Composite was up by 156.3 points to 3,083.59.

But the turnaround does little to make up for the sharp losses seen so far this week.

Shares elsewhere in Asia also made gains after a jump on Wall Street on Wednesday, which saw its biggest rise in four years.

In Europe, stock markets also rose. By midday, the FTSE 100 was up more than 2%, as were the main indexes in Paris and Frankfurt.

The mood was lifted by remarks by US Federal Reserve official William Dudley, who said the case for a rate rise, which had seemingly been on the cards for September, now seemed "less compelling".

In other Asian markets on Thursday:

  • Hong Kong's Hang Seng index closed up by 3.6% at 21,838.54 points
  • The region's biggest stock market, Japan's Nikkei 225, finished trading 1.1% up at 18,574.44, building on strong gains made the previous session
  • South Korea's Kospi also notched up gains for a second day. The index closed 0.7% higher at 1,908.0 points
  • In Australia, the benchmark S&P/ASX 200 wrapped up the day 1.2% higher at 5,238.70 points.

Fears easing

Severe losses on the Chinese market over the past week had sent shockwaves around the globe.

A move by the country's central bank, the People's Bank of China, to cut its key lending rate on Tuesday initially failed to calm the Chinese market.

Concerns about China's slowing economic growth have been rising for months with a constant trickle of poor economic data, the latest of which last Friday suggested that factory activity shrank in August at its fastest pace in more than 6 years.

Analysts believe the tentative share market rebound indicates fears over China's woes may have somewhat eased.

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