The Shanghai Composite index ended 1.82 per cent higher at 2,996.76 after swinging between losses and gains earlier in the session. Despite the gains, the index remains down more than 2.5 per cent from last week's highs.
The blue-chip CSI300 index was up 2.14 per cent, with its financial sector sub-index higher by 1.66 per cent, the consumer staples sector up 2.32 per cent, the real estate index up 1.2 per cent and the healthcare sub-index up 0.67 per cent.
Xi's first visit to Wuhan since the epidemic follows a sharp drop in new cases in mainland China in the past week, with 19 new infections by Monday, down from 40 a day earlier.
Falling infection cases and resumed economic activity "should support our relative optimism on A shares in a regional context, which rests on the premise that policy accommodation and positive flows factors should outweigh the COVID-19-related growth disruptions, hence driving moderate multiple expansion for A shares," Goldman Sachs analysts said in a note.
Data showed producer prices swung back into deflation territory in February as the epidemic slowed economic activity, raising the prospect of more policy stimulus even as consumer inflation stayed elevated on high food costs.
The smaller Shenzhen index ended up 2.43 per cent and the start-up board ChiNext Composite index was higher by 2.663 per cent.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.33 per cent, while Japan's Nikkei index closed up 0.85 per cent.
At 0715 GMT, the yuan was quoted at 6.942 per U.S. dollar, 0.09 per cent firmer than the previous close of 6.948.
The largest percentage gainers on the main Shanghai Composite index were Hubei Chutian Smart Communication Co Ltd, up 10.13 per cent, followed by Lanhai Medical Investment Co Ltd , gaining 10.1 per cent and Hengtong Logistics Co Ltd , up by 10.06 per cent.
The largest percentage losers on the Shanghai index were Nanjing Chemical Fibre Co Ltd down 10.07 per cent, followed by Aucma Co Ltd losing 10.04 per cent and Shenma Industry Co Ltd down by 10.01 per cent.
So far this year, the Shanghai stock index is down 1.7 per cent and the CSI300 has fallen 0.3 per cent, while China's H-share index listed in Hong Kong is down 8.7 per cent. Shanghai stocks have risen 4.04 per cent this month.
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