Updates to the close

SHANGHAI, March 20 (Reuters) - Mainland China shares ended lower on Friday, logging their biggest weekly drop since November, as the Middle East war continued to weigh on investor sentiment.

** The benchmark Shanghai Composite index .SSEC closed down 1.24%, the lowest closing level since December 24, 2025. The blue-chip CSI300 Index .CSI300 fell 0.35%.

** For the week, SSEC plunged 3.4% and CSI300 lost 2.2%, their worst since mid-November.

** Non-ferrous metal shares .CSI000811 led the losses, dropping 1.1% on Friday and 12.2% for the week. They were pressured by a drop in gold prices following a firm U.S. dollar and the U.S. Federal Reserve's hawkish tone, dampening hopes for near-term interest rate cuts.

** China's central bank said it will fully leverage its financial tools to "resolutely safeguard the stable operations of stock, bond, foreign exchange and other financial markets," according to a statement on Thursday.

** Top central banks on Thursday said they stood ready to tackle any inflation surge, as the Iran war put the Middle East's vital energy infrastructure in the line of fire.

** Earlier in the session, China left its benchmark lending loan prime rates for March unchanged for the 10th consecutive month.

** "With the Fed constrained in its easing cycle and the USD remaining firm, the People's Bank of China faces a narrower policy corridor, balancing domestic growth support with FX stability," said Byron Lam, an economist at DBS.

** "Rising imported energy costs could further complicate easing, as policymakers weigh growth support against imported inflation risks."

** Meanwhile, photovoltaic shares .CSI931151 outperformed, jumping 2.9% after Tesla TSLA.O was reported to be seeking to buy $2.9 billion worth of equipment from Chinese suppliers.

** Hong Kong benchmark Hang Seng Index .HSI slipped 0.88%, while the city's tech shares .HSTECH lost 2.48%.

** Alibaba 9988.HK Hong Kong shares plunged to the lowest level since August, after its third-quarter results missed analysts' expectations, as heavy spending on one-hour delivery and promotions during peak shopping periods failed to spur demand.

(Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips and Harikrishnan Nair)