Asia Stocks: Data-Driven Volatility

Updated from Feb. 19 at 7:21 p.m. EST

Asian markets advanced Tuesday in the face of rising volatility and bearish inflation data. The Hang Seng Index closed up 1.5% at 24,123.17, and the Shangahi Composite Index finished up 2.1% at 4,664.29.

Chinese stocks were able to survive early volatility after the government reported that China's inflation rate rose to its highest level in 11 years. Consumer prices spiked up 7.1% in January from a year earlier, advancing from a 6.5% increase in December, according to the National Bureau of Statistics. Economists put the blame on China's rising inflation and food prices due to recent sever blizzards that have caused crop damage and shortages in food supplies.

Some strong advancers among the Chinese ADRs on Tuesday were China Digital TV (STV Quote), up 7%; Focus Media (FMCN Quote), up 4%; China Techfaith Wireless (CNTF Quote), up 5%; and Cnooc (CEO Quote), up 5%. ...