DHAKA: Chinese shares jumped up after the central bank set the yuan guidance rate higher for the first time in nine days.

Regulators also suspended the "circuit breaker" rule late on Thursday after the mechanism was triggered twice in one week, leading to an early close, reports the BBC.

The central bank's weakening of the yuan had led to worries that China's economy was slowing more than expected.

The rest of Asia recovered losses after the dramatic plunge in Chinese shares had triggered a global sell-off.

On Friday, the Shanghai Composite was up 1.8% to 3,184.25 as investor confidence grew.

On Thursday, China's central bank had further weakened the yuan for the eighth consecutive session, sparking fears of the start of a currency war in the region.

A weaker yuan makes it cheaper for Chinese firms to export goods, boosting the economy.

Trading in Shanghai and Shenzhen was closed within the first 30 minutes, making it China's shortest trading day on record.

On Friday, Japan's benchmark Nikkei 225 index was up 0.7% to 17,908.84 as concerns remained about a deeper than expected slowdown in the Chinese economy.

Australian shares were down 0.5% with the S&P/ASX 200 index at 4,985.20 points.

The country's biggest trading partner is China, and moves by the world's second largest economy to boost exports worried investors about how slowing growth would impact on trade.

In South Korea, the Kospi index rose 0.3% to 1,910.16.

Shares of Samsung Electronics were up 1.7% despite the tech giant's profit guidance for the fourth quarter missing market expectations.

BDST: 0856 HRS, JAN 8, 2016
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