China stocks closed slightly higher on Thursday, snapping a two-session losing streak, as gains for big-cap infrastructure stocks offset a weak resources sector. The bluechip CSI300 index rose 0.2 percent, to 3,436.54, while the Shanghai Composite Index gained 0.1 percent to 3,208.45 points. Analysts attributed the softness in resources stocks to a continued retreat in China's commodities futures market after a dramatic rally.
A strong US dollar and worries over capital outflows also curbed investor appetites. With the dollar index still hovering near a 13-1/2 year high against a basket of currencies, there are persistent fears of yuan depreciation, as global investors continue to bet US President-elect Donald Trump's policies will result in higher inflation and stronger US economic growth. Shares were down for most of the day, until a late rally in infrastructure stocks helped tip indexes into positive territory. Gree Electric Appliances, China's largest air conditioner manufacturer, gained 2 percent after the company scrapped plans to acquire a lithium battery producer.
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