Most Asian markets fell Thursday on concerns about declines on Wall Street, but Chinese shares extended a rebound from sharp losses earlier in the week after reports doused speculation over a possible capital gains tax, REPORTED AP. The benchmark Shanghai Composite Index rose 3 percent to 3,890.80. The Shenzhen Composite Index of China's second, smaller market jumped 3.7 percent to 1,126.84. The rebound from an 8.3 percent plunge in the Shanghai benchmark Monday appeared to be gaining momentum as officials talked up the market, with a front-page report in the state-run Shanghai Securities News rebutting rumors China might impose a tax on capital gains. «The report greatly eased retail investors' concerns, as many of them were speculating the tax would be implemented in the wake of the duty hike,» said Du Changjiang, an analyst at China Great Wall Securities. Other Asian markets fell, following the 0.95 percent drop in the Dow Jones industrial average amid concern that the U.S. Federal Reserve might raise rates later this year. Investors in Asia closely monitor the U.S. economy, a key export market. Tokyo's Nikkei 225 index rose 12.45 points, or 0.07 percent, to finish at 18,053.38 points. For much of Thursday's session, the index remained in negative territory, but they recovered by the closing bell. «The market really feels quite buoyant right now. It's been lagging other markets for most of this year and so there is strong upward momentum out there supporting us,» said Motomi Hiratsuka, head of sales trading at BNP Paribas. A test of that momentum is likely to come Friday as investors await Japanese machinery order data, traders said. Gainers included Mitsui Engineering & Shipbuilding Co., which climbed 4.90 percent to 728 yen (US$6.02), while higher oil prices led investors to buy trading company shares, with Mitsubishi Corp. adding 1.24 percent to 3,260 yen (US$26.94). In Hong Kong, the blue chip Hang Seng Index fell 18.45 points, or 0.1 percent, to finish at 20,800.16. Many property stocks were hurt by concerns about higher interest rates. Sino Land fell 1 percent at HK$16.68 and Henderson Land dropped 0.4 percent to HK$54.40. But Hong Kong stocks bounced back after shares on the Chinese mainland continued to recover from their recent losses. Some Chinese stocks rose in response, with heavyweight China Mobile (Hong Kong) Ltd., the world's largest mobile carrier by subscribers, adding 0.2 percent at HK$73.00. Chinese offshore oil producer CNOOC rose 3 percent to HK$8.28, its sixth straight record high close. In currencies, the U.S. dollar was trading at 121.32 yen late Thursday, up from 121.01 yen late Wednesday in New York. The euro inched down at US$1.3493 from US$1.3506 in early trading.