[SHANGHAI] China stocks closed higher on Wednesday on optimism around the United States and China moving closer to a trade deal, and Beijing encouraging consumer spending amid economic slowdown.

The bluechip CSI300 index ended up 1.0 per cent at 3,078.48, while the Shanghai Composite Index closed 0.7 per cent higher at 2,544.34 points.

The US trade delegation in Beijing is "wrapping up" meetings with Chinese officials and will return to the United States later on Wednesday after a "good few days", a US official said.

Originally scheduled for Monday and Tuesday, the negotiations were extended by a day amid signs of progress on issues, including purchases of US farm and energy commodities, and increased access to China's markets.

"We believe that the talks far exceeding their initial timeframe indicates that both Chinese and US officials are determined to reach an agreement in these negotiations," Hu Shaohua, an analyst at Donghai Securities, said in a note.

Shares of most Chinese automakers rallied after the vice chairman of the country's state planner said the country would introduce policies to boost domestic spending on items, including automobiles and home appliances.

Consumer firms also gained, in particular home appliance makers, as Beijing encourages spending in the sector.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.43 per cent, while Japan's Nikkei index closed up 1.1 per cent.

At 0709 GMT, the yuan was quoted at 6.839 per US dollar, 0.23 per cent firmer than the previous close of 6.8548.

Shares of Jinzhou Port Co Ltd, up 10.13 per cent, were the biggest per centage gainers on the main Shanghai Composite index, followed by those of Lifan Industry Group Co Ltd, gaining 10.1 per cent and Changshu Fengfan Power Equipment Co Ltd, up 10.08 per cent.

Shares of Pengqi Technology Development Co Ltd , down 8.06 per cent, were the biggest per centage losers on the index, followed by those of Zhejiang Dafeng Industrial Co Ltd, down 5.6 per cent, and Shandong Tyan Home Co Ltd, falling 4.88 per cent.

While the Shanghai benchmark index has risen 2 per cent so far this year, the CSI300 is up 2.3 per cent. China's H-share index listed in Hong Kong is up 2.1 per cent.

About 19.19 billion shares were traded on the Shanghai exchange, roughly 143.4 per cent of the market's 30-day moving average of 13.38 billion shares a day. The volume in the previous trading session was 15.81 billion.

As of 0710 GMT, China's A-shares were trading at a premium of 17.70 per cent over the Hong Kong-listed H-shares.

REUTERS