Asia: Stocks outside of Japan rise on China stimulus hopes

Asian stocks outside of Japan gained after weak Chinese data stimulated hopes of further stimulus.

Chinese producer prices fell 2.2% in October, more than the forecast for a 2% drop, after declining 1.8% a month earlier.

China’s consumer price index (CPI) rose by 1.6% in October, as expected by analysts and unchanged from the prior month.

“With the producer price index falling 2.2% on the year, again due to weaker prices in commodity imports, this is both positive for corporate profitability while the CPI reading is well below the People's Bank of China's 3.5% target, opening the door to further targeted stimulus. It's win win from the markets perspective,” said Alpari UK analyst Craig Erlam.

The figures follow trade data over the weekend which showed growth in China’s exports and imports slowed in October.

Hong Kong’s Hang Seng index rose 0.83% while the Shanghai composite increased 2.30%.

Japan’s Nikkei 225 declined 0.59% as the yen rose against the dollar to hurt exporters.

Company-wise Samsung Electronics jumped as technology shares led gains in Seoul.

GCL-Poly Energy Holdings slumped as the maker of polysilicon floated a plan to sell its solar wafer operations.