Chinese stocks closed higher Friday, reversing losses for seven straight trading days, as worries over the eurozone debt crisis were eased after leaders there reached broad consensus on a growth deal.

The benchmark Shanghai Composite Index gained 1.35 percent, or 29.59points, to close at 2,225.43.

The Shenzhen Component Index closed at 9,500.32, up 1.25 percent, or 117.05 points.

Combined turnover came in at 113.8 billion yuan (18.06 billion U.S. dollars), up from 106.6 billion yuan the previous trading day.

Gainers outnumbered losers by 761 to 142 in Shanghai, and by 1,196 to 242 in Shenzhen.

European Council President Herman Van Rompuy said Thursday that top EU leaders agreed to mobilize 120 billion euros (about 150 billion U.S. dollars) for immediate growth measures during a two-day summit in Brussels.

Separately, EU leaders agreed early Friday morning on a future framework for the European banking safety net to directly recapitalize commercial banks.

Meanwhile, investors were expecting more monetary loosening measures in China in the coming month, as key economic data released in June continued to suggest weak growth in the world's second-largest economy.

The central bank may again cut banks' reserve requirement ratio (RRR) in July in order to boost lending if new loans issued in June were less than expected, said Lu Zhengwei, chief economist at Industrial Bank.

The People's Bank of China has cut the RRR twice and the benchmark interest rate once this year in an effort to inject liquidity to buoy the economy.

Shares of insurers led the rise on Friday. China Life Insurance Co., the country's largest insurer, rose 3.86 percent to close at 18.3 yuan per share, while China Pacific Insurance (Group) Co. gained 4.43 percent to 22.18 yuan.

Brokers and banks also gained, with Everbright Securities Co. jumping 5.61 percent to finish at 13.17 yuan. The Industrial and Commercial Bank of China, the country's biggest lender by market value, gained 0.77 percent to 3.95 yuan.