Shanghai index continues 7-year high

Chinese stocks rallied on Friday, with the benchmark Shanghai index up 2.2 percent to a seven-year high.

The Shanghai Composite Index gained 92.47 points to close at 4287.3 points, while Shenzhen Component Index climbed 1.3 percent to 14,149.34 points.

Airline stocks led the gain on Friday, with Spring Airlines surging by the daily limit of 10 percent, and Hainan Airlines by 7.9 percent. China Southern Airlines, gaining 8.5 percent, earlier announced that it expected a turnaround in its first-quarter earnings, crediting the Belt and Road Initiative as a major contributor.

The coal sector rebounded, with industry giants China Shenhua Energy and Yanzhou Coal Mining Group climbing 3.5 and 2.7 percent respectively on Friday.

Economists expect the central bank to deliver another cut on benchmark interest rates and the reserve requirement ratio in the coming months, as the country's economic growth fell to a six-year low of 7 percent in the first quarter, according to government data released on Wednesday.

Key infrastructure projects in railway, water works, environment protection, energy and utilities are also expected to speed up construction and together with other supportive measures buttress real activity from May, UBS Securities wrote in a note.