China Stocks Rebound as Dollar Tumbles

China stocks rebounded more than 1 percent on Thursday, led by resources shares as an overnight tumble in the U.S dollar eased concerns of yuan deprecation, at least temporarily.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 1.2 percent to 2,984.76 point, while the Shanghai Composite Index gained 1.6 percent, to 2,781.02 points.

China's central bank set its official yuan midpoint rate at the strongest level since Jan. 6, after the dollar index fell to its lowest level in three months.

Analysts said the dollar tumble, as well as recent interventions by China's central bank, have eased fears of further yuan depreciation in the near term. However, the currency is likely to remain under downward pressre as the economy continues to slow.

(Reporting by Samuel Shen and Pete Sweeney)