China stocks climbed on Wednesday as investors bet on further policy support from Beijing to offset the impact of a fast-spreading new coronavirus, with start-ups leading the gains. At the close, the Shanghai Composite index was up 1.3% at 2,818.09, moving further away from a one-year bottom hit during Monday's selloff. The blue-chip CSI300 index gained 1.1%.

CSI300's financial sector sub-index was higher by 0.3%, the consumer staples sector rose 1.4%, the real estate index was up 0.4% and healthcare shares rallied 3.3%.

The smaller Shenzhen index rose 2.5%, while the tech-heavy start-up board index ChiNextP rallied as much as 4.4% before closing 3% higher - trading at levels last seen before the Lunar New Year holiday.

Among best performers in the index were Shenzhen Mindray Bio-Medical Electronics and battery maker CATL. Both surged by their 10% daily limits.

Strong gains in China's start-up board companies boosted broader market sentiment, said Zhang Gang, an analyst with China Central Securities.

Reuters reported on Tuesday Chinese policymakers are readying measures to support an economy jolted by a coronavirus outbreak that is expected to have a devastating impact on first-quarter growth.

The death toll in China passed 490, as two US airlines suspended flights to Hong Kong following the first fatality there and 10 cases were confirmed on a quarantined Japanese cruise ship.

China's central bank said on Tuesday that its huge liquidity injections through open market operations this week showed its determination to restore market confidence.

Some listed companies announced share buybacks, while fund managers and their employees also planned to purchase their own funds to buy equities.

Growth in China's services sector slowed for a second straight month in January, a traditionally busy sales season, a private sector survey showed.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.4%, while Japan's Nikkei index was up 1%.

The onshore yuan was flat at 6.9991 by 0710 GMT.

So far this year, the Shanghai stock index is down 7.6% and the CSI300 has fallen 6.5%.

About 30.98 billion shares were traded on the Shanghai exchange. The volume in the previous trading session was 36.4 billion.

The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.