China stocks rally: China stocks experienced an uptick on Thursday, following an announcement by the securities regulator regarding heightened scrutiny of derivative businesses in the stock market. 

Additionally, investor anticipation for further stimulus ahead of a crucial policy meeting contributed to improved sentiment.

The blue-chip CSI 300 Index gained 0.9 per cent by the lunch break, rebounding from a 1.3 per cent decline in the previous session, while the Shanghai Composite Index rose 0.7 per cent. 

The CSI300 index was up 8.3 per cent for the month, set to end a six-month losing streak.

Hong Kong's Hang Seng Index edged up 0.2 per cent, with the Hang Seng China Enterprises Index remaining relatively flat. 

However, other Asian equities experienced mostly weaker performance, while the dollar and US Treasuries maintained stability ahead of significant US inflation data.

State-led buying and tighter regulations have played pivotal roles in lifting China's blue-chip index from five-year lows this month. Yet, there is a consensus that more assertive stimulus measures are necessary to sustain momentum amid an economy facing challenges.

The upcoming annual session of the National People's Congress is anticipated to provide clear indications of the government's stimulus initiatives. During this session, the annual growth target will be established, along with a plan for its achievement.

In a bid to restore investor confidence, the China Securities Regulatory Commission announced plans to reinforce supervision of derivatives, including DMA-Swap products. Additionally, a hedge fund faced penalties for engaging in excessive, high-frequency trading in share index futures.

Chinese Premier Li Qiang stressed upon the importance of strengthening economic and trade ties between China and the United States, urging Washington to refrain from decoupling efforts during a meeting with a US delegation.

Shares in semiconductor and communications equipment manufacturers led gains, with both sectors experiencing jumps of more than 3 per cent. Meanwhile, automobile shares added 2.6 per cent to the overall positive sentiment. 

In Hong Kong, tech giants traded flat, while healthcare firms witnessed a 1.2 per cent increase.

(With Reuters Inputs)