China Stocks Edge Higher Amid Policy Hopes, Trade Tensions Loom

China's stocks closed higher on Thursday as investors awaited policy announcements from Beijing. Concerns over escalating U.S.-China trade tensions impacted broader Asian markets. The CSI 300 Index rose by 0.6%, and the Shanghai Composite Index climbed 0.5%. Mixed sector performances were observed, with technology and semiconductor stocks falling.

China's stocks wrapped up Thursday with gains as investors awaited policy news from a significant leadership meeting in Beijing, scheduled to conclude later in the day.

Despite this, broader Asian markets were dampened by looming U.S.-China trade tensions. The CSI 300 Index rose 0.6%, while the Shanghai Composite Index increased by 0.5%. Hong Kong's Hang Seng Index saw a modest rise of 0.2%.

Investor optimism focused on the meeting's final day aims to restore confidence in the economy, impacted by weaker-than-expected second-quarter GDP and job market concerns. Nevertheless, balancing goals such as economic boost and debt reduction may hinder substantial policy implementation.

Steven Leung, executive director at UOB Kay Hian in Hong Kong, noted the government's cautious stance and the market's anticipation for property or technology sector support. Prominent declines were seen in Asian chip stocks, influenced by potential U.S. export restrictions on advanced semiconductor technology to China. The CSI Information Technology Index dropped 0.6%, with semiconductor stocks down 1.6%.

Sector performances were varied, with increases in financials (0.14%), consumer staples (0.07%), real estate (1.18%), and healthcare (0.95%), while tech giants in Hong Kong declined by 0.8%. Market concerns also revolved around U.S. foreign policy under a potential Donald Trump administration.

(With inputs from agencies.)