China stocks rose on Thursday as a strong rally on Wall Street helped calm shaky global markets, prompting Chinese and foreign investors to hunt for bargains after a 20 percent plunge over the past week. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, added 1.64 percent, or 27.78 points, to 1,723.54.

It briefly dipped into negative territory, falling 0.71 percent, but finished near the day’s high after a late surge, halting the steepest five-day rout since 1996. The Nasdaq composite rose 84 points, or 1.9 percent, to 4,786.

Traders are also jittery about the outlook for interest rates.

The turmoil in Shanghai affected global markets to the point where William Dudley, the head of the New York branch of the Federal Reserve, on Wednesday said it had weakened the argument for a September US rate rise. The Standard & Poor’s 500 index gained 47 points, or 2.4 percent, to 1,988. Brent crude, a benchmark for worldwide oils used by many U.S. refineries, fell 70 cents to $43.14.

Much of the TSX’s exuberance came from oil prices, which gained more than nine per cent or more than $4 to trade at $42.76 US a barrel.

China’s turbulent stock markets slipped again on Wednesday, as a double-barrelled blast of central bank stimulus failed to convince investors of Beijing’s ability to jolt the world’s second biggest economy out of its slowdown.

The central bank also said after the market close that it would lend commercial banks about $22 billion to boost liquidity in the short term in its first such move since February.

THE QUOTE: “When you’re in a market of high volatility, you tend to get big moves in both directions”, said Randy Frederick, managing director of trading and derivatives with the Schwab Center for Financial Research.

Hong Kong’s Hang Seng Index ended 3.6 percent percent higher at 21,838.54. That’s when many economists believe the U.S. Federal Reserve will start raising interest rates, which have remained near zero since 2009. The euro edged down to $1.1327 from the previous session’s $1.1337. Germany’s DAX jumped 5 percent, while France’s CAC-40 rose 4.1 percent.

U.S. S&P 500 mini futures ESc1 fell 0.7 percent to 1,858.75, edging closer to Monday’s 10-month low of 1,831.

The report “gave credence to the story that the U.S. economy could be building momentum”.

The dollar rose to 119.60 yen versus 118.66 yen late Wednesday.