Global stocks rebounded Thursday as China’s wobbling market clawed back some of its steep losses and oil prices jumped on signs of improving demand.
The 20 percent drop in the Shanghai benchmark since Aug. 4 sent ripples of fear through world markets this week as investors fretted the government might tighten credit that has helped fuel a massive rally in Chinese stocks since March.
Some of those fears dissipated Thursday with an unexpected fall in U.S. crude inventories raising hopes of recovery from recession and solid gains in Chinese stocks.
The Shanghai index surged 126 points, or 4.5 percent, to 2,911.58, while Japan’s Nikkei 225 stock average advanced 179.41 points, or 1.8 percent, to 10,383.41. Hong Kong’s Hang Seng rose 374.63, or 2 percent, to 20,336.36.