Stock market today: Asian markets advance after Wall Street logs its best week in nearly a year

HONG KONG (AP) — Asian shares advanced Monday following Wall Street gains last week that were buoyed by hopes for early interest rate cuts.

U.S. futures were higher and oil prices gained as the Israeli military announced late Sunday that it had encircled Gaza City and cut the besieged coastal strip in two, fueling investors’ fears of a deepening conflict.

South Korean stocks surged 4.2% to 2,469.21, after the government restored a ban on short-selling, aiming to prevent illegal use of the trading tactic that is often used by hedge funds and investors. Short-selling refers to selling borrowed shares to profit from price declines.

Japan’s Nikkei 225 index gained 2.4% to 32,720.52.

However, the country’s services activity in October expanded at its slowest pace this year, raising concerns about weakness in a key sector driving Japanese economic activity.

The Hang Seng in Hong Kong added 1.7% to 17,962.64 and the Shanghai Composite index was up 0.9% at 3,057.50. Australia’s S&P/ASX 200 rose 0.4% to 7,004.50. India’s Sensex was 0.6% higher and Bangkok’s SET gained 0.3%.

Wall Street steamrolled higher Friday as it closed out its best week in nearly a year.

The S&P 500 climbed 0.9%, to 4,358.34. It rose every day last week. The Dow Jones Industrial Average gained 0.7% to 34,061.32, and the Nasdaq composite jumped 1.4% to 13,478.28.

Stocks surged on rising hopes the Federal Reserve is finally done with its market-crunching hikes to interest rates, meant to get inflation under control. A report on Friday underscored that pressure is easing on inflation after it showed employers hired fewer workers last month than economists expected.

Strong profit reports helped drive some stocks to towering gains. Generac, a maker of backup generators, soared nearly 28% for its best...