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 per cent, 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 per cent annual pace in the last quarter, supported by relatively strong exports as companies increased shipments markets other than the US.

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 per cent to 25,884.81, while the Shanghai Composite index added 0.7 per cent to 3,866.77.

In South Korea, the Kospi surged 1.3 per cent 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 per cent while automakers Kia Corp. rose 2.7 per cent and Hyundai Motor Co. climbed 2.5 per cent.

Australia's S&P/ASX 200 rose 0.2 per cent 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 per cent to 6,664.01. The Dow Jones Industrial Average added 0.5 per cent to 46,190.61 and the Nasdaq composite climbed 0.5 per cent to 22,679.97.

It was the best week for the S&P 500 since early August,.

Some of the nervousness around US-China trade tensions eased on Friday after President Donald Trump said that very high tariffs he threatened to put on Chinese imports are not sustainable.

Trump also told Fox News Channel's “Sunday Morning Futures” that he would meet with China's leader, Xi Jinping, at an upcoming conference in South Korea. That's counter to an earlier, angry posting he made on social media, where he said there seemed to be “no reason” for such a meeting.

Bank stocks, meanwhile, stabilized on Friday after several reported stronger profit for the latest quarter than analysts expected, including Truist Financial, Fifth Third Bancorp and Huntington Bancshares.

Zions Bancorp., which is charging off $50 million of loans where it found “apparent misrepresentations and contractual defaults” by the borrowers, climbed 5.8 per cent following a 13.1 per cent loss on Thursday.

Western Alliance Bancorp, which is suing a borrower due to allegations of fraud, rose 3.1 per cent after a 10.8 per cent fall on Thursday.

The quality of loans that banks and other lenders have made is under scruntiny following last month's Chapter 11 bankruptcy protection filing of First Brands Group, a supplier of aftermarket auto parts.

The question is whether the lenders' problems are just a collection of one-offs or a signal of something larger threatening the industry. Uncertainty is high following a long stretch where many borrowers were able to stay in business, even with the weight of higher interest rates. And with prices soaring to records for all kinds of investments, the appetite for risk may have gotten too high.

JPMorgan CEO Jamie Dimon addressed the issue on an earnings conference call with analysts earlier this week.

“When you see one cockroach, there are probably more,” Dimon said. “Everyone should be forewarned on this one.” In other dealings early Monday, US benchmark crude oil lost 19 cents to USD 56.96 a barrel. Brent crude, the international standard, also gave up 19 cents, to USD 61.10 a barrel.

The US dollar rose to 150.87 Japanese yen from 150.59 yen. The euro climbed to USD 1.1667 from USD 1.1651. (AP) RD RD

Asian markets surge after Japan coalition and China data; bank loan charge-offs and bankruptcy raise lender scrutiny. The report highlights credit and legal risks in the banking sector: Zions Bancorp. charged off $50 million of loans for alleged borrower misrepresentations and contractual defaults, Western Alliance Bancorp. is suing a borrower over fraud allegations, and a Chapter 11 bankruptcy filing of a supplier raised questions whether these are isolated incidents or signal broader industry stress, prompting heightened creditor scrutiny.