Asian shares advance, with Japan’s benchmark surging after ruling party forms new coalition

A person walks in front of an electronic stock board showing Japan’s Nikkei index at a securities firm on Oct 20, in Tokyo. (AP)

BANGKOK, Oct 20, (AP): Asian markets surged Monday after Wall Street finished a winning week, overcoming worries over bank lending and the trade war with China. US futures edged higher while oil prices fell. Japan’s benchmark Nikkei 225 jumped 2.9%, to 48,970.40, setting a new record, after its governing Liberal Democrats found a new coalition partner, securing support for its leader Sanae Takaichi to become the country’s first female prime minister.

Takaichi is expected to push for market-supporting policies such as low interest rates and higher government spending. China reported its economy grew at a 4.8% annual pace in the last quarter, supported by relatively strong exports as companies increased shipments markets other than the U.S. Still, it was the slowest pace in a year.

The world’s second largest economy is still struggling to emerge from a prolonged downturn in its property market and to encourage consumers and businesses to spend more. China’s ruling Commumist Party leadership convened a meeting Monday in Beijing that is expected to set policy goals for the coming five years and also tackle personnel changes.

The outcome of the closed door meeting this week will likely emerge gradually and be formally endorsed at the annual session of the national legislature in early March. Hong Kong’s Hang Seng advanced 2.5% to 25,884.81, while the Shanghai Composite index added 0.7% to 3,866.77. In South Korea, the Kospi surged 1.3% to 3,796.64, setting another record on hopes for a trade deal with Washington and strong demand for semiconductors.

SK Hynix gained 3.3% while automakers Kia Corp. rose 2.7% and Hyundai Motor Co. climbed 2.5%. Australia’s S&P/ASX 200 rose 0.2% to 9,009.10. On Friday, US stocks cruised higher after banks recovered some of their sharp losses from the day before. The S&P 500 rose 0.5% to 6,664.01. The Dow Jones Industrial Average added 0.5% to 46,190.61 and the Nasdaq composite climbed 0.5% to 22,679.97. It was the best week for the S&P 500 since early August.