China's stocks gained, with the Shanghai Composite Index rising from its biggest loss in eight months, as lenders climbed after the central bank damped speculation it will rein in bank lending.

The benchmark gauge advanced 1.7 percent to 3,321.56 at close, after changing direction at least 10 times, as the People's Bank of China affirmed a "moderately loose" monetary policy to support the nation's economy.

The Shanghai measure tumbled 5 percent on Wednesday amid concern the government will curb inflows into a market that had more than doubled from last year's low. Beijing-based Caijing magazine reported on Wednesday that the central bank might order lenders to set aside larger reserves.