Investors remained cautious as they awaited clearer signals on whether the weeks-long conflict in Iran could ease ahead of possible talks over the weekend.

Despite the mixed session, both indices posted solid weekly gains. The Shanghai index rose 1.6%, while the Shenzhen index gained 4%, supported by improving sentiment. This was helped by a 10-day ceasefire between Lebanon and Israel, as well as comments from Donald Trump suggesting a potential meeting between the US and Iran, raising hopes of de-escalation.

In China, attention is now turning to domestic policy, with the loan prime rate decision expected on Monday. Major global banks have recently scaled back expectations for further monetary easing and now anticipate rates will remain unchanged through the year.

Among individual stocks, Kweichow Moutai led the declines, falling 3.8% after weaker annual results. Meanwhile, Zhongji Innolight surged 5.1% to a record high, driven by strong first-quarter earnings.