China shares edged higher on Friday, helped by logistics stocks, while Alibaba put Hong Kong equities on course for their worst day since early October after reporting disappointing earnings. ** The Shanghai Composite Index (.SSEC) rose 0.34% to 3,532.55, while the blue-chip CSI300 index (.CSI300) gained 0.18% to 4,846.09 by the end of the morning session. But both indexes were set for weekly losses. ** Gains in the morning session were led by the logistic sector, with the CSI 300 transportation index (.CSI000957) up by 1.2% after some companies including STO Express (002468.SZ) and Yunda Holdings (002120.SZ) reported robust revenue gains in October. ** By midday, the consumer staples sector (.CSI000912) rose 0.85%, the real estate index (.CSI000952) inched up by 0.48%, while the healthcare sub-index (.CSI300HC) lost 0.65%. ** The smaller Shenzhen index (.SZSC) was up 0.52%, the start-up board ChiNext Composite index (.CNT) was higher by 0.29%, and Shanghai"s tech-focused STAR50 index (.STAR50) rose 0.98%. ** However, some analysts said market participants were wary of any future developments in Sino-U.S. relations after top leaders from the two countries held a virtual meeting earlier this week. U.S. President Joe Biden said on Thursday the United States was considering a diplomatic boycott of the Beijing Olympics. ** In Hong Kong, the benchmark Hang Seng index (.HSI) dropped 1.8% to 24,874.90, while the Hong Kong China Enterprises Index (.HSCE) lost 1.7% to 8,884.55. ** Analysts attributed the fall to disappointing earnings from Chinese e-commerce giant Alibaba (9988.HK), , which heightened worries about Beijing"s broad regulatory crackdown and slowing growth in the world"s second-biggest economy. ** Shares of Alibaba dropped by 10.38% to HK$139.8 after the company forecast annual revenue to grow at its slowest pace since its 2014 stock market debut as second-quarter results missed expectations due to slowing consumption, increasing competition and a regulatory crackdown. read more ** "Asian equities are facing turbulence as a confluence of powerful headwinds is building -- a slowing China, higher commodity prices at the wrong time of the business cycle, and a mild rebound in household demand," said Sanjay Mathur, chief economist for Southeast Asia and India at ANZ.