China will boost the number of mutual funds that can invest overseas next year, spurring inflows into other emerging markets and slowing the yuan's appreciation, according to fund research companies Z-Ben Advisors and Howbuy.
The stock of Chinese Internet conglomerate Tencent Holdings Ltd saw its biggest drop in more than two months after it was involved in an unprecedented cyber war with a leading anti-virus software provider.
Singapore Exchange Ltd, the Asia-Pacific region's integrated securities and derivatives exchange, announced 11 Chinese companies had listed in Singapore by the end of October, about 33 percent of the total newly-listed companies on the exchange this year.
Rubber in Tokyo climbed to a 27-month high, while futures in Shanghai and Thailand made record gains, after flooding in major growing nations raised concerns that a supply shortage will worsen, fueling a price rally.
Mainland stocks rose to the highest in almost seven months, led by raw-material companies, after the US Federal Reserve Board said it will buy an extra $600 billion of Treasuries to bolster economic growth.
Hong Kong stocks closed up 390.96 points, or 1.62 percent, at 24,535.63 on Thursday.
The People's Bank of China (PBOC), China's central bank, issued 15 billion yuan ($2.25 billion) of three-month bills through its open market operations Thursday at an unchanged yield of 1.7726 percent.
The ChiNext Index, launched by the Shenzhen Stock Exchange (SSE) on June 1, added 17.09 points, or 1.64 percent, to close at 1,057.71 on Thursday.
China's stock index futures closed higher Thursday with the contract for November, the most actively traded, up 1.52 percent from the previous trading day to end at 3,528.6 points.
China's stocks rose to a seven-month high Thursday with the benchmark Shanghai Composite Index up 1.85 percent, or 55.95 points, to close at 3,086.94.
Goldman Sachs Group Inc raised its 12-month target for Hong Kong's Hang Seng Index to 29,000, saying the city has the most to gain from extra liquidity released by quantitative easing programs and mainland growth.
Agricultural and consumer stocks may continue to offer investment opportunities amid expectations of inflation climbing in October, while natural resource shares could face a correction after excessive gains, analysts said.