China stocks end higher on stimulus expectations amid COVID surge

** Economists expect Beijing to take imminent monetary easing measures to prop up the economy and make sure China remains on track to hit its around 5.5% growth target for this year. ** "China's virus prevention and lockdown measures continue to have a negative impact on the economy and the job market, and markets expect the authorities to cut interest rates or take other easing measures as early as next week," economists at OCBC Wing Hang Bank said in a note.

China stocks closed higher on Friday, buoyed by expectations of further policy easing measures to support a slowing economy hit by the country's worst COVID-19 outbreak in two years. The blue-chip CSI 300 Index rose 0.5% to 4,230.77, while the Shanghai Composite Index gained 0.5% to 3,251.85.

** For the week, the CSI 300 Index dropped 1.1%, while the Shanghai Composite Index fell 0.9%. ** "Range-bound sentiment continues amid concerns on macro recovery, COVID-19 management and tightening liquidity globally," Morgan Stanley said in a note. "Earnings estimate reductions further accelerated."

** Real estate developers surged 2.7%, financial firms gained 1.3%, and construction engineering stocks jumped 4.1%. ** Energy and resources shares added 1.3% and 1.6%, respectively.

** China reported 1,576 new confirmed COVID-19 cases and 22,648 new asymptomatic cases on April 7. ** Economists expect Beijing to take imminent monetary easing measures to prop up the economy and make sure China remains on track to hit its around 5.5% growth target for this year.

** "China's virus prevention and lockdown measures continue to have a negative impact on the economy and the job market, and markets expect the authorities to cut interest rates or take other easing measures as early as next week," economists at OCBC Wing Hang Bank said in a note.