SHANGHAI COMPOSITE

The Shanghai Composite is as close to a proxy for public firms in China as investors can get, and indexes are believed to reflect where markets think a nation's economy is headed. So what does it mean that, despite China's white-hot growth, the Shanghai Composite has been seriously lagging the S&P 500?

In Asia Monday Japan's Nikkei 225 Index fell 0.6% to 9,479 and in Hong Kong the Hang Seng Index lost 0.4% to close at 23,068, China's Shanghai Composite Index added 0.2% to end the day at 2,984.

Investors in Asia were quick to react to a report that China has canceled its last round of reserve ratio hikes, sending markets up on Tuesday. The Hang Seng rose 1.7% in Hong Kong, the Shanghai Composite inched up 0.1%, and in Japan the Nikkei 225 Index gained 0.2%.

China's National Bureau of Statistics reported that the country's consumer price index rose 4.9% in January. Hong Kong's Hang Seng Index fell 1% and in China the Shanghai Composite Index remained virtually unchanged. Japan's Nikkei 225 Index inched up 0.2%.

Shares in Asia slid lower Friday as investors reacted to Chinese government moves to tighten credit and clamp down on inflation. In Hong Kong, the Hang Seng Index fell 0.8% to 22,877, and in China, the Shanghai Composite sank 0.9% to 2,872. Japan's Nikkei 225 Index edged down 0.4% to 10,040.

Asian markets rose Thursday with investors piling money into China stocks, despite the government's efforts to control liquidity. The Shanghai Composite Index climbed 1% and Hong Kong's Hang Seng Index rose 0.3%. In Japan the Nikkei 225 Index gained 0.8%.

Hong Kong's Hang Seng Index climbed 2% to 24,145 Wednesday -- a two-year high -- after Goldman Sachs predicted the index could reach 29,000 in the next year. That, combined with expectations of a new $500 billion round of U.S. economic stimulus, was good news for Asian markets.

In Asia on Tuesday, Hong Kong's Hang Seng Index rose 0.1%, China's Shanghai Composite inched down 0.3%. and in Japan, the Nikkei 225 crept up 0.1%. Investors are closely monitoring the U.S. midterm elections, with many predicting that if the Democrats lose their majorities in both the House and the Senate, the dollar will continue to slide.

Asian markets were mixed Friday. After a week-long holiday, the Shanghai Composite surged 3.1% and the Hong Kong Hang Seng Index crept up 0.3%. In Japan the Nikkei 225 Index slid 0.1%.

In Asia Wednesday, Japan's Nikkei 225 Index rose 0.9% to 10,177. Hong Kong's Hang Seng Index sank 0.9%, ending the day at 21,612 and China's Shanghai Composite Index lost 0.6% to close at 3,255.