Shanghai Composite rallies 4.9%; US Fed to decide on rate hike

Shanghai Composite surged 4.91%, after a cumulative two day loss of 6.1%, which is bound to give the investors some sense of relief. CSI 300 gained 4.99%.

Following a rally in the US equity market based on speculation that the Fed will hike rates in its meeting, Chinese markets showed resilience and bounced back from its slump yesterday to close 4% up today.

Shanghai Composite surged 4.91%, after a cumulative two day loss of 6.1%, which is bound to give the investors some sense of relief. CSI 300 gained 4.99%.

Overall, the Asian market showed an upward trajectory, with Japan's Nikkei 225 climbing 0.85%, while TOPIX gaining 0.71%. Hang Seng Index rallied 2.65% from its previous close.

The U.S. Federal Reserve is meeting on 16th and 17th of September, to decide if it is time to hike rates for the first time in nine years. Any decision by the Fed will have a spiralling impact on the world's economy.