Chinese ADRs jumped in overnight trading, as soft data on the US jobs market entrenched bets that the Federal Reserve will cut the interest rate this month and Chinese equities recuperated the losses from the biggest sell-off since the start of a bull run.

Alibaba rose 3.5%; Baidu and KE Holdings rose 1.5%; JD.ocm rose 1.2%; PDD Holdings and NetEase rose 1.1%.

The CSI 300 Index of China’s onshore stocks climbed 2.2 per cent at the close and the Shanghai Composite Index rebounded 1.2 per cent, recovering all the lost ground from a rout sparked by bubble concerns.

Sentiment on Chinese stocks got a fillip after the S&P 500 index rose to a record on Thursday, with traders pricing in a 99% probability of a quarter-point cut in the borrowing cost at the Fed’s policy meeting on September 18. A private report showed that US payroll increases missed estimates, while jobless claims rose to the highest since June. The string of data came just a day before the official non-farm payroll report due Friday night. A soft reading will cement a Fed cut, with some traders even expecting a half-point reduction.