Asian markets experienced a significant surge on Monday, buoyed by a strong performance on Wall Street and easing concerns over bank lending and the U.S.-China trade war. Japan’s Nikkei 225 soared 2.9% to a record high of 48,970.40, following the Liberal Democratic Party’s formation of a new coalition, paving the way for Sanae Takaichi to potentially become Japan’s first female prime minister. Takaichi is anticipated to advocate for market-friendly policies, including low interest rates and increased government spending. Meanwhile, China reported a 4.8% annual economic growth rate for the last quarter, driven by robust exports to non-U.S. markets. However, this marks the slowest growth pace in a year, as the nation grapples with a prolonged property market slump and sluggish consumer and business spending. The Chinese Communist Party’s leadership convened in Beijing to outline policy goals for the next five years and address personnel changes, with outcomes expected to be formalized in March. Hong Kong’s Hang Seng rose 2.5%, while South Korea’s Kospi hit a record high, fueled by optimism over a potential trade deal with the U.S. and strong semiconductor demand. U.S. futures edged higher, and oil prices declined slightly. Bank stocks stabilized after several institutions reported stronger-than-expected quarterly profits, though concerns linger over loan quality following recent bankruptcies. JPMorgan CEO Jamie Dimon warned of potential risks in the lending sector, emphasizing the need for caution. In currency markets, the U.S. dollar strengthened against the Japanese yen, while the euro also gained ground.
Asian shares advance, with Japan’s benchmark surging after ruling party forms new coalition
