China stocks close higher, inflation at 4-year low

China's key stock indices closed higher on Wednesday after weaker-than-expected inflation data fuelled hopes of more stimulus policies to support growth.

The benchmark Shanghai Composite Index went up 0.6 percent to finish at 2,373.67 points, and the Shenzhen Component Index gained 0.71 percent to close at 8,198.12 points.

Data released Wednesday showed China's consumer inflation slowed to 1.6 percent in September, the lowest since January 2010, indicating the economy is still struggling with sluggish domestic demand and fueling speculation that policymakers will take more measures to stabilize the economy.

The securities sector rose more than 3 percent, with Soochow Securities surging 6.55 percent to end the day at 10.58 yuan per share.

The aviation industry also rose across the board. Air China surged 9.92 percent to 4.32 yuan per share, while China Southern Airlines jumped 6.62 percent to 3.06 yuan.