Asia-Pacific Markets Rally as China’s Economy Meets Growth Expectations

Picture Credit: UCEAP University of California

Asia-Pacific markets climbed on Monday as investors welcomed new economic data from China that showed steady growth and policy stability. China’s GDP expanded by 4.8% in the July-to-September quarter compared to a year earlier, aligning with expectations from analysts. The world’s second-largest economy also kept its benchmark lending rates unchanged, maintaining the one-year loan prime rate at 3%, signaling a measured approach to sustaining growth amid global uncertainty.

Hong Kong’s Hang Seng Index surged 2.52%, while the mainland’s CSI 300 rose 0.53% to close at 4,538.22. The positive sentiment was echoed across the region, with Japan’s Nikkei 225 jumping 3.37% to a record 49,185.5, and the Topix gaining 2.46% to end at 3,248.45. The rally in Japan followed reports that the Liberal Democratic Party and the Japan Restoration Party had reached an agreement to form a coalition government, boosting investor confidence.

In South Korea, the Kospi added 1.76% to close at 3,814.69, marking its third consecutive record high, while the Kosdaq advanced 1.89% to 875.77. Australia’s S&P/ASX 200 also posted moderate gains, closing 0.41% higher at 9,031.9, supported by strength in mining and energy stocks.

The optimism in Asia came after U.S. markets ended higher on Friday, with the Dow Jones Industrial Average rising 0.52% to 46,190.61, while the S&P 500 and Nasdaq Composite gained 0.53% and 0.52%, respectively. Investors in the U.S. were encouraged by a softer tone on trade talks with China and improving sentiment in regional banking stocks following last week’s sell-off.

Overall, the synchronized rally across global markets reflects growing confidence in economic resilience despite trade tensions and interest rate uncertainties. Analysts say sustained stability in China’s growth outlook could continue to anchor investor sentiment across Asia in the coming weeks.