Chinese stocks rally after biggest fall in seven months

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Chinese stocks rebounded overnight after experiencing the biggest decline in seven months.

Shares had previously sold-off mid-week after problems at an unlisted Chinese real estate firm prompted talk of a potential bailout of a developer.

US Federal Reserve chair Janet Yellen then provided more fuel to the fire when she said rates could rise six-months after the end of QE, catching investors unawares.

However, having experienced their worst decline since last September, investors returned to Chinese stocks overnight, driving valuations back up.

China's Shanghai Shenzhen CSI 300 index rose 3.5%, with nine companies seeing a rise in price of roughly 10%.

Meanwhile, Hong Kong's Hang Seng also climbed 1%, with big moves from the property sector as it recovers from the earlier sell-off.

However, Japan's Nikkei 225 continued to struggle this week, sliding another 1.65%.

Late last night markets in the US also closed up, with the Dow Jones Industrial Average 0.7% firmer.

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