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SHANGHAI: China stocks settled higher on Thursday, in line with other Asian markets on hopes of more stimulus from US President Joe Biden's administration to cushion the economic damage wreaked by the COVID-19 pandemic.

The blue-chip CSI300 index rose 1.6% to 5,564.97, while the Shanghai Composite Index added 1.1% to 3,621.26. The tech-heavy start-up board ChiNext rallied 2.5%, while the STAR50 index firmed 0.1%. Republicans in the US Congress have indicated they are willing to work with the new president on his administration's top priority, a $1.9 trillion fiscal stimulus plan, but some are opposed to the plan's price tag.

Leading the gains, the CSI300 materials index and the CSI300 transport index advanced 2.6% and 3%, respectively. For now, the A-share market continued to find support from a solid recovery in China's economy and ample liquidity, Yuekai Securities said in a report. Worries over the resurgence of COVID-19 cases kept gains in check.

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