China stocks snap 7-day winning streak

China stocks closed lower on Thursday, after having gained for seven straight sessions, as Hubei province reported a sharp jump in new cases and deaths due to the coronavirus outbreak.

The Shanghai Composite index ended 0.7% lower at 2,906.07. The blue-chip CSI300 index was down 0.6%.

CSI300's financial sector sub-index was lower by 0.7%, the consumer staples sector fell 0.6% and the healthcare sub-index lost 1%.

The smaller Shenzhen index fell 0.8% and the start-up board ChiNext Composite index was weaker by nearly 1%.

Hubei, the epicentre of the virus, reported a record 242 deaths as of Wednesday, bringing the toll to 1,310. Daily new cases in the province jumped to 14,840, up from 1,638 after it adopted a new method for diagnosing cases.

The head of the Communist Party in Hubei has been relieved of duty, the official Xinhua news agency reported.

There is limited room now for any further rise in the market, given the strong rally since last Monday when markets plunged, China Galaxy Securities analyst Fu Yanping said.

The focus will now turn to Beijing's policies and the impact of the virus outbreak than on China's economic growth, Fu said.

China's ruling Communist Party said earlier this week it would take steps to halt the spread of the virus and counter its economic impact, state broadcaster CCTV reported.

Beijing is expected to further step up counter-cyclical measures as the impact of the epidemic on China's economy gradually emerges, Guosheng Securities said.

Chinese policymakers have already implemented a series of measures to support the economy since the coronavirus outbreak began.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.2%, while Japan's Nikkei index closed down 0.1%.

At 0702 GMT, the yuan was 0.18% weaker at 6.984 per US dollar.

So far this year, the Shanghai stock index is down 4.7% and the CSI300 has fallen 3.3%. Shanghai stocks have declined 2.4% this month.

About 27.48 billion shares were traded on the Shanghai exchange. The volume in the previous trading session was 24.87 billion. The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.