Oversold Chinese airliners surged on low fuel prices and on market sentiment in Hong Kong. Air China (HKG:0753), China's flagship carrier, surged 7.8% followed closely by China Southern Airlines (HKG:1055) and China Eastern Airlines (HKG:0670). All three airliners were among the best five components of the Hang Seng Index (INDEXHANGSAENG:.HSI) for the day.
Investors in Shanghai remained bullish after a similar surge a day before. Almost all large cap stocks advanced for the second day except for Kweichow Moutai (SHA:600519), a liquor maker.
Underlying indices for Chinese ETFs surged in Asia on Friday. All but two components of the iShares FTSE/Xinhua China 25 Index (NYSE:FXI) advanced early morning in Asia, boding well for the most liquid Chinese ETF. The advance was universal among small caps as well; only ten components of the 156 member Guggenheim China Small Cap ETF (NYSE:HAO) fell the rest advanced.