Asian stocks outside China rallied from the lowest level since 2012 on short covering, triggered by speculation that policy makers will boost monetary stimulus. Japanese benchmark index Nikkei advanced more than 7% following a biggest weekly loss since the financial crisis. Hang Seng gained more than 3%, while India’s Sensex and Nifty were up 2% each. In South Korea, the Kospi was up 1.39%. The Shanghai Composite Index fell 2% as markets reopened following a week long holiday. The weakness is largely due to traders reacting to last week’s risk aversion in the markets. Data released in China did little to help turn the tide in favor of the bulls. China’s exports dropped in January, while imports also fell, adding to economic challenges confronting the world’s second largest economy. For more information, read our latest forex news.