Chinese shares performed a U-turn to close 4.75 percent higher in the morning session on Friday after the country raised fuel prices.

The benchmark Shanghai Composite Index, which covers A and B shares, increased by 103.66 points to 2879.54 points, while the smaller Shenzhen Component Index rose 5.03 percent to 9622.25 points.

China raised the prices of gasoline, diesel oil, aviation kerosene and electricity, Thursday night, revealing an unprecedented broad plan to raise energy prices.

The benchmark retail prices of gasoline and diesel oil was lifted to 6,980 yuan ($1014.5) and 6,520 yuan per ton, up more than 16 percent and 18 percent, respectively.

PetroChina, the country's largest oil producer, gained 5.14 percent to close at 15.95 yuan in the morning session, while Asia's top oil refiner, Sinopect, rose 4.53 percent to 13.14 yuan.

The aviation industry was the most vulnerable to the gasoline price hike. Yet the flag carrier Air China increased slightly by 0.37 percent to 8.06 yuan.

China Southern Airlines also rose 0.28 percent to 7.08 yuan, but China Eastern Airlines dropped 0.61 percent to 6.5 yuan.

The banking sector also saw big gains. The Industrial and Commercial Bank of China, the country's largest lender, rose 5.19 percent to 5.27 yuan.

Bank of China also increased by 6.17 percent to 4.3 yuan.