Asia shares pulled up by Nikkei rise; China GDP beats

SYDNEY — A surge in the Nikkei led Asian markets higher on Monday as Japan looked close to installing a new prime minister, while a reading on US inflation this week is expected to be no more than a speed bump on the way to further rate cuts there.

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Data showed China’s gross domestic product (GDP) grew 1.1% in the third quarter, to top forecasts, while industrial output also beat with a rise of 6.5%, which could reinforce Beijing’s determination to fight a lengthy trade war with the United States.

On an annual basis, its 4.8% growth still marked the slowest pace in a year. A continued fall in Chinese home prices also showed the property sector remained a big drag on the economy, household wealth and spending, with retail sales up a modest 3% on the year.

Investors are hoping for more stimulus as policymakers convene this week to discuss the latest Five-Year Plan, though markets have gotten used to being disappointed.