September 27, 2011 (Chinavestor) Chinese stocks surged in Asia on Tuesday as fears of a global meltdown eased. Policy makers are enlarging funds to avert a crisis in the eurozone, steps well taken by U.S. and Aisan investors. The DJIA surged 272.4 points a day before, setting a stage for a similarly broad rally in Asia. Each and every component of the Hang Seng index (INDEXHANGSENG:.HSI) advanced and the index closed at the day's high. BYD Company (HKG:1211), a Chinese electric car and battery maker, surged 18.4%! Similarly to Hong Kong, investors enjoyed bottom fishing on the Mainland, sending the Shanghai Composite Index (SHA:000001) off 14 months lows. The index rose 21.9 points or 0.9%. The rally was universal, stocks that advanced outnumbered those that fell fifteen to one among the 50 largest components of the index.
Chinese stocks led the advance in Hong Kong. The Hang Seng China Enterprises Index (INDEXHANGSENG:.HSCE) surged 6.4%, outperforming that of the Hang Seng Index (INDEXHANGSENG:.HSI).
The rally was universal among Mainland Chinese stocks in Hong Kong. Each and every component of the Xinhua China 25 Index rose, boding well for the iShares FTSE/Xinhua China 25 Index (NYSE:FXI).