China's stocks rally on improving manufacturing data

China's stocks rallied on Monday, ending a four-day losing streak, as improving manufacturing data and easing concerns of inflation boosted market sentiment. The benchmark Shanghai Composite Index gained 2.29 percent, or 53.06 points, to close at 2,370.33. The Shenzhen Component Index increased 2.69 percent, or 260.41 points, to close at 9,957.62. Gainers outnumbered losers by 853 to 83 in Shanghai and 1134 to 203 in Shenzhen. Combined turnover expanded to 115 billion yuan (18.04 billion U.S. dollars) from 83.5 billion yuan on the previous trading day. Markets were shored up by HSBC's Monday announcement that China's Purchasing Managers Index (PMI) preview for the manufacturing sector stood at 51.1 in October, the highest level in five months. A reading above 50 indicates expansion. Easing concern about the country's inflation also helped buoy market sentiment as a senior government official said CPI growth will begin to decelerate in the remaining months this year. The Consumer Price Index (CPI), a main gauge of inflation, is expected to decline to less than 5 percent in the next two months, said Peng Sen, vice director of the National Development and Reform Commission (NDRC), the country's top economic planning agency. Financial stocks were among the market leaders. Haitong Securities surged 6.68 percent to 9.10 yuan. Ping An Insurance Co. climbed 5.26 percent to 36.84 yuan. Cement companies performed well with Anhui Conch Cement Company up 5.01 percent to 18.65 yuan and Huaxin Cement up 4.67 percent to 18.62 yuan.