China stocks end firmer as investors hope for stepped-up stimulus

China stocks reversed course to close higher on Wednesday, as investors hoped the government would speed up rolling out further fiscal stimulus to shore up an economy that has been hobbled by the coronavirus pandemic.

** At the close, the Shanghai Composite index was up 0.6% at 2,843.98. ** The blue-chip CSI300 index was up 0.82%, with its financial sector sub-index ending 0.01% higher, the consumer staples sector up 3.03%, the real estate index up 0.29% and the healthcare sub-index up 2.04%. ** The collapse in China's economic activity caused by the coronavirus has heightened calls from top policy advisers for the government to hasten the rollout of fiscal stimulus, as ballooning unemployment threatens social stability.

** "The panic is over as the pandemic is gradually brought under control with economic activities restarting but investors are still cautious," said Tian Weidong, an analyst with Kaiyuan Securities. "As long as the schools are not open and cinemas are still closed, the economy is not likely to recover fully." ** China reported 30 new coronavirus cases on Wednesday, 23 of which were so-called imported cases involving travellers from overseas, up from 11 a day earlier. ** The smaller Shenzhen index ended up 1.05% and the start-up board ChiNext Composite index was higher by 0.95%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.57%, while Japan's Nikkei index closed down 0.74%. ** As of 0717 GMT, the yuan was quoted at 7.0818 per U.S. dollar, 0.15% firmer than the previous close of 7.0925. ** The largest percentage gainers in the main Shanghai Composite index were Inner Mongolia Junzheng Energy & Chemical Group Co Ltd, which closed 10.16% higher, followed by Ningbo Construction Co Ltd, gaining 10.1% and Apple Flavor & Fragrance Group Co Ltd, up by 10.05%.

** So far this year, the Shanghai stock index lost 6.8% and the CSI300 dropped 6.3%, while China's H-share index listed in Hong Kong was down 13.3%. Shanghai stocks gained 3.41% so far this month.