DHARAMSALA, India (Reuters) - A day after he slammed China for causing untold suffering in Tibet, the Dalai Lama Wednesday said he still believed the future was bright and hoped the Chinese leadership would use more common sense.

Thousands of exiled Tibetans from around the world, mostly monks and nuns in maroon robes, gathered at the main Buddhist temple in the north Indian town of Dharamsala Wednesday to hear the Dalai Lama's sermon on Buddhism.

A day after the 50th anniversary of the failed Tibetan uprising against China, when the 73-year-old spiritual leader lamented that Tibet had become a hell on earth, the Dalai Lama said he was cheered by signs of support among the Chinese people.

Now hopefully, the Chinese leadership should use more common sense rather than emotion, he said in response to a question at the end of the sermon, while walking the short distance to his residence.

I think the future is bright. Of course this moment we are passing through difficult period, but this is impermanent, he said, accompanied by Samdhong Rinpoche, the Tibetan prime minister-in-exile and a group of Tibetan religious heads.

The world was becoming a better place, and more people were talking about peace and non-violence, the Dalai Lama said after delivering a sermon on the Buddha's teachings on the theme of inter-connectedness and inter-dependency.

I think one encouraging thing is, among the Chinese intelligence (intelligentsia) ... they are showing genuine concern and genuine sympathy and spirit of solidarity, he said.

That is a hopeful sign, he said, reiterating comments on Tuesday that more and more Chinese were beginning to see a problem with Beijing's rule over Tibet and that the voice of support for Tibet within China was rising steadily.

Beijing says the call for Tibetan high-level autonomy is tantamount to a demand for independence, and Wednesday denounced the United States for criticizing its rule of Tibet and calling for dialogue with the Dalai Lama.

In Dharamsala, a candlelight vigil by activists is planned later in the day to mark the anniversary of the uprising.

(Editing by David Fox)