Mumbai, Oct. 27 -- Asian stocks advanced on Monday as softer-than-expected U.S. inflation report raised hopes of Federal Reserve rate cuts and reports suggested that the United States and China were closing in on a trade deal.

Investors are anticipating a potential accord after top negotiators from both sides reported progress on contentious issues ahead of a meeting between Presidents Donald Trump and Xi Jinping later this week.

China's Shanghai Composite index rallied 1.18 percent to 3,996.94, hitting a new 10-year high following high-level trade talks in Malaysia.

According to U.S. Treasury Secretary Scott Bessent, Washington and Beijing have reached a "very substantial framework" that would prevent the U.S. from imposing 100 percen...