SHANGHAI: Mainland benchmark stock index rebounded from losses, led by oil and financial companies, after Abu Dhabi provided $10 billion to prevent Dubai's Nakheel PJSC from a default.

Sinopec, Asia's biggest oil refiner, surged 8.4 percent to 13.7 yuan and Industrial & Commercial Bank of China Ltd, the nation's biggest bank, gained 1.7 percent to 5.32 yuan.

"The Dubai debt repayment has reassured investors that there won't be a second global financial crisis," said Wang Zheng, a fund manager at Jingxi Investment Management Co. "The market is reacting to the government aid very positively."