China Stocks Edge Slightly Higher After Prolonged Decline

China stocks closed marginally higher on Friday after four consecutive sessions of decline. Investor sentiment remained weak due to concerns over slow economic recovery and a lack of major stimulus, despite Beijing's announcement of 300 billion yuan to support upgrades and trade-ins in consumer goods.

China stocks managed to close marginally higher on Friday, recovering slightly after four consecutive sessions of decline, but investor sentiment remained subdued. The market's caution stems from ongoing worries about a sluggish economic recovery and the absence of substantial stimulus measures.

Investor uncertainty was further amplified by weakness in global markets, particularly in the Asia-Pacific region, which saw their worst session since mid-April. China's earlier report of weaker-than-expected economic growth and a key leadership gathering signaling policy continuity rather than significant shifts added to the concerns.

Despite Chinese authorities announcing a 300 billion yuan ($41.40 billion) allocation for ultra-long treasury bonds to support equipment upgrades and consumer goods trade-ins, apprehensions about China's economic recovery lingered. By the close, the Shanghai Composite index rose by 0.14%, while the blue-chip CSI300 index increased by 0.29%.

(With inputs from agencies.)