SHANGHAI: China stocks closed higher after struggling for direction on Thursday, as investors cautiously awaited policy news from a key leadership gathering in Beijing that is expected to end later in the day.

However, the prospect of escalating trade tensions between the US and China, which dragged broader Asian equities down, curbed overall sentiment.

China’s CSI 300 Index finished 0.6% higher and the Shanghai Composite Index gained 0.5%. Hong Kong’s Hang Seng Index edged up 0.2%.

Investor hopes are high on the final day of the four-day plenum, which seeks to inject confidence into the economy, especially after the second-quarter GDP missed forecasts due to a protracted property-sector downturn and worries about jobs. However, conflicting goals such as boosting growth while cutting debt may mean little progress toward implementing change.

“It’s difficult for the government to launch anything drastic,” said Steven Leung, executive director at brokerage UOB Kay Hian in Hong Kong, adding that some sort of support either for the property sector or to drive technology is anticipated.

“I think we are expecting something at least, and so far we’ve been disappointed and hearing nothing,” he said.

Chip stocks in Asia tumbled on Thursday, tracking a heavy selloff on Wall Street spurred by a report that the United States is mulling tighter curbs on exports of advanced semiconductor technology to China.

China’s CSI Information Technology Index lost 0.6%, with semiconductor firms down 1.6%.

Other sectors were mixed, with the financial sector sub-index higher by 0.14%, the consumer staples sector up 0.07%, the real estate index up 1.18% and the healthcare sub-index up 0.95%.

Tech giants listed in Hong Kong lost 0.8%. Market participants are also worried that China will figure heavily in Donald Trump’s foreign policy if he wins the US presidential race.