November 2, 2011 (Chinavestor) News that China's inflation is slowing sent stocks higher in Asia. The Hang Seng Index (INDEXHANGSENG:.HSI) advanced 363.8 points or 1.8% in an afternoon rally similarly to the Shanghai Composite Index (SHA:000001). The advance was universal among large caps on the mainland where all 50 largest components of the index advanced. Most components of the Hang Seng Index (INDEXHANGSENG:.HSI) rose as well. Resource and shipping companies led the advance but BYD Company succumbed to profit taking after five days of sound gains.
All but three components of the Xinhua 25 Index advanced, boding well for the most liquid Chinese ETF the iShares FTSE/Xinhua China 25 Index (NYSE:FXI). Aluminum Corp. of China (HKG:2600) led resource stocks higher while China Railway Group (HKG:0390) extended October rally into November. The stock bounced back 80% in the last 30 days after hitting a 52 week low earlier in October.