China stocks close higher Friday

The stock markets reversed the losses of Thursday to close Friday's trading in positive territory with expectations that a new round of quantitative easing (QE3) by the U.S. Federal Reserve may lift U.S. and Chinese markets.

Gold-concept stocks, coal, cement as well as banking shares were leading the rally. The benchmark Shanghai Composite Index rose 13.47 points, or 0.64 percent, to close at 2,123.85.

The Shenzhen Component Index rose 49.05 points, or 0.56 percent, to close at 8,740.05.

Combined turnover rose to 149.07 billion yuan (23.55 billion U.S. dollars) from 134.94 billion yuan the previous trading day.

Gainers outnumbered losers by 533 to 361 in Shanghai and by 736 to 712 in Shenzhen.

Gold and crude oil futures posted strong gains after the unveiling of QE3 on Thursday, under which the Fed will buy 40 billion U.S. dollars of mortgage securities on a monthly basis until the economy improves, and extend super-low interest rates into 2015.

On Friday's trading, the Shandong Gold Mining Co., Ltd. was up 5.31 percent to 39.68 yuan per share.

Cement stocks continued to trade higher with Xishui Strong Year Co., Ltd. jumping by the daily limit of 10 percent to 6.67 yuan. The Xinjiang Qingsong Building Materials and Chemical Co., Ltd. rose 2.2 percent to 10.67 yuan.

The China Construction Bank was up 1.53 percent to 3.99 yuan; the Agricultural Bank of China rose 1.22 percent to 2.48 yuan.

Bucking the trend, ship-builders and tourism stocks fell. Sainty Marine Corporation Ltd. fell 5.26 percent to 19.47 yuan. China International Travel Service Corporation Ltd. dipped 2.66 percent to 28.22 yuan.

Li Daokui, a former advisor to China's central bank, said the country would face renewed pressure for its currency to appreciate following QE3, although Chinese exporters will benefit from stronger demand in the U.S. if QE3 is rolled out.

However, previous rounds of quantitative easing by the world's largest economy were blamed for pushing up commodity prices and inflation in emerging markets.