Shares on China's key stock market, the Shanghai Composite Index, rebounded to end Thursday's trading 1.27 per cent higher, overcoming losses early in the session, according to dpa. The Shanghai index closed at 2,581.51 while the smaller Shenzhen Component Index finished on 11,627.49, gaining 1.55 per cent. Both indexes had fallen by about 1.6 per cent in early trading as Asian stocks slid on concerns over markets in the United States and Europe. But then a rebound set in, led by the service sector, with shares of several tourism firms and alcoholic drinks producers rising sharply. Shares in textile companies also rose after Chinese customs figures showed a jump in monthly export value to 26 billion dollars in July, the highest level this year. Stock markets across Asia have generally been falling this week amid fears of a second dip to the US recession, and national debt woes in Europe, both key markets for Asian exporters. On Friday, the US long-term debt was downgraded by one notch from its top-level rating by Standard & Poor's, triggering several days of turmoil on stock markets around the world. In the eurozone, concern grew about a possible default on their national debts by Italy and Spain, but eased through the week on assurances of support from the European Central bank. But rumours of a downgrade to France's national debt from its current top ranking on Wednesday prompted President Nicolas Sarkozy to return from holiday, and the Paris CAC 40 stock index to fall 5 per cent.
