China stocks rise early as Wall Street calms global markets
A strong rebound on Wall Street helped calm global markets after days of wild volatility, helping China's major stock indexes rise on Thursday.business Updated: Aug 27, 2015 09:36 IST
`The CSI300 index rose 2.2% to 3,092.81 points by 0126 GMT, while the Shanghai Composite Index gained 1.7% to 2,978.03 points.
China CSI300 stock index futures for September rose 4.1%, to 2,938.6, 154.21 points below the current value of the underlying index. The Hang Seng index in Hong Kong was up 3.2%, to 21,758.62 points.
Ironically, US stocks rallied on Wednesday on expectations that the Federal Reserve will hold off from hiking interest rates next month due to mounting global uncertainties, including China's sputtering economy and tumbling stock markets, the very factors that prompted heavy selling in the previous sessions.
China stocks fell on Wednesday, taking their losses to over 20% in just five days, underscoring fragile investor confidence and deep doubt over whether the central bank's latest cuts in interest rates and reserve ratios on Tuesday could stabilise the economy.