**Asian Markets Surge as Wall Street Posts Winning Week Amid Economic Developments**

*BANGKOK (AP)* — Asian markets surged Monday following a strong finish on Wall Street, with investors overcoming concerns related to bank lending and the ongoing trade war with China. U.S. stock futures inched higher while oil prices declined.

Japan’s benchmark Nikkei 225 jumped 2.9% to 48,970.40, setting a new record. The rally came after the ruling Liberal Democratic Party formed a coalition with a new partner, securing support for Sanae Takaichi to become Japan’s first female prime minister. Takaichi is anticipated to advocate for market-friendly policies, including low interest rates and increased government spending.

China reported its economy grew at a 4.8% annual rate in the last quarter, buoyed by relatively strong exports to markets other than the U.S. However, this growth pace marked the slowest in a year. The world’s second-largest economy continues to struggle with a prolonged downturn in its property market and efforts to boost consumer and business spending.

Meanwhile, China’s ruling Communist Party leadership held a closed-door meeting in Beijing on Monday. The session is expected to establish policy goals for the next five years and address leadership changes. The outcomes will likely be revealed gradually and formally endorsed at the national legislature’s annual session in early March.

In regional market activity, Hong Kong’s Hang Seng index gained 2.5% to 25,884.81, and Shanghai’s Composite index rose 0.7% to 3,866.77. South Korea’s Kospi surged 1.3% to a record 3,796.64 amid optimism for a trade deal with Washington and robust demand for semiconductors. Key stocks included SK Hynix, up 3.3%, Kia Corp., up 2.7%, and Hyundai Motor Co., which climbed 2.5%. Australia’s S&P/ASX 200 increased 0.2% to 9,009.10.

On Friday, U.S. stocks edged higher as banks recovered some losses from the previous day. 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. This marked the S&P 500’s best week since early August.

Some concerns over U.S.-China trade tensions eased after President Donald Trump stated that the exceptionally high tariffs threatened on Chinese imports are “not sustainable.” In an interview on Fox News Channel’s “Sunday Morning Futures,” Trump indicated he would meet with China’s leader, Xi Jinping, at an upcoming conference in South Korea. This stance contrasted with an earlier, critical social media post where Trump questioned the need for such a meeting.

Bank stocks stabilized following stronger-than-expected quarterly profits reported by several institutions, including Truist Financial, Fifth Third Bancorp, and Huntington Bancshares. Zions Bancorp, which is writing off $50 million in loans due to “apparent misrepresentations and contractual defaults” by borrowers, rebounded 5.8% after a 13.1% drop on Thursday. Western Alliance Bancorp, currently suing a borrower over fraud allegations, rose 3.1% following a 10.8% decline on Thursday.

The quality of loans made by banks and lenders is under increased scrutiny after First Brands Group, an aftermarket auto parts supplier, filed for Chapter 11 bankruptcy last month. The key issue is whether these problems are isolated incidents or indicative of broader risks to the industry.

Uncertainty remains elevated after a prolonged period during which many borrowers managed to stay afloat despite higher interest rates. With asset prices soaring to record highs across various sectors, the appetite for risk may have become too pronounced.

JPMorgan CEO Jamie Dimon addressed these concerns during an earnings call with analysts earlier this week: “When you see one cockroach, there are probably more. Everyone should be forewarned on this one.”

**Other Market Movements**

On Monday morning, U.S. benchmark crude oil prices fell 19 cents to $56.96 per barrel. Brent crude, the international standard, also dropped 19 cents, settling at $61.10 per barrel.

The U.S. dollar strengthened against the Japanese yen, rising to 150.87 from 150.59 yen. The euro also edged up to $1.1667 from $1.1651.

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*Stay tuned for more updates on global market trends and economic developments.*
https://wtop.com/world/2025/10/asian-shares-advance-with-japans-benchmark-surging-after-ruling-party-forms-new-coalition/