Asia markets rebound as panic eases

Asia markets rallied on Thursday as investors around the region joined the global stocks rebound.

China’s benchmark Shanghai Composite closed with a 5.3% gain, while the smaller Shenzhen Composite added 3.3%.

In Japan, the Nikkei jumped 1.5%. Australia’s ASX All Ordinaries added 1.4% and Seoul’s KOSPI Composite gained roughly 0.7%. Hong Kong’s Hang Seng Index was 3% higher in afternoon trading.

The strong performance comes after a series of wild trading sessions in the region. Before rebounding on Thursday, the Shanghai Composite had lost more than 20% over the previous five days.

In the U.S., the Dow raced 619 points higher on Wednesday, its most emphatic point gain since the 2008 financial crisis.

Three factors have weighed on global markets this week:

1. Concerns that China’s economy is slowing faster than analysts had anticipated.

2. Uncertainty over when the U.S. Federal Reserve will raise its benchmark interest rate.

3. The effect of exceedingly cheap oil — crude is now trading around $40, its lowest point in more than six years.

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