SHANGHAI: China stocks closed down on Thursday as a flare-up in domestic COVID-19 cases spurred concerns over more lockdowns, while weakness in other Asian markets also weighed on sentiment as investors re-assessed the US monetary policy outlook.

The blue-chip CSI 300 Index dropped 0.4% at the close, and the Shanghai Composite Index slipped 0.2%.

Hong Kong’s Hang Seng Index retreated 1.2%, while the Hang Seng China Enterprises Index declined 1.4%.

Most other Asian stocks dropped while the US dollar rebounded, as investors tried to assess the outlook for the Federal Reserve policy following stronger-than-expected retail sales data.

China reported more than 20,000 new COVID-19 daily infections in recent days, as the country eased some stringent anti-virus rules.

“Fears of rising COVID infections at home could force authorities to revert to broader lockdowns,” Maybank analysts said in a note.