[The fall in markets] looks to have been exaggerated and driven more by fears and regulatory issues around the share market and currency rather than a renewed deterioration in economic indicators," said Shane Oliver, investment strategist at AMP Capital.
The People's Bank of China (PBOC) set the daily yuan rate at 6.5646 - firmer than the previous day's rate, ending eight days of weakening the currency to boost exports.
Investors were worried that China's moves to weaken the yuan would spark a currency war in the region as other countries tried to remain competitive.