Stocks edge up 0.7% as rally loses steam

Chinese stocks closed up 0.7 percent yesterday, reversing early losses as institutional investors bought large-caps such as China Unicom in late trade in an apparent response to a government appeal to support the market.

The benchmark Shanghai Composite Index ended at 2216.811 points, compared with an intraday low of 2116.960 hit in early trade, when it was down 3.84 percent.

Gaining Shanghai stocks outnumbered losers by 714 to 206, while turnover in Shanghai A shares shrank to 48.90 billion yuan from Tuesday's 77.32 billion yuan.