Japanese equities surged on hopes for easing in China. China's inflation dropped to 30-month low in July, thus creating a room for further monetary policy loosening. However, disappointing Japan's core machinery orders and consumer confidence data capped the upward trend of the stocks. Nikkei 225 Index rallied 1.1% to trade at 8,978.60. All industries in the index soared. The largest gainers were oil and gas companies as well as telecommunications. Inpex and JX Holdings climbed 1.41% and 5.68% despite sliding oil prices. Among telecommunications, KDDI and Softbank surged 1.65% and 2.24%. Meanwhile, Nikon plunged 8.1% after the camera maker reduced its full-year profit forecast, citing strong Yen and weak global economy. The top-loser was Oki Electric, sinking 33.61%. The firm announced it will miss financial reporting deadline because of accounting irregularities at its Madrid-based unit that may result in a USD102 million decline in earnings.