Asian stocks rise after US rally on infrastructure deal
TOKYO (AP) — Asian shares rose Friday, buoyed by a rally on Wall Street that came after President Joe Biden announced a bipartisan deal on infrastructure spending.
Japan's benchmark Nikkei 225 jumped 0.7% in afternoon trading to 29,067.13. South Korea's Kospi gained 0.5% to 3,301.76. Australia's S&P/ASX 200 edged up 0.6% to 7,315.00. Hong Kong's Hang Seng surged 1.3% to 29,246.23, while the Shanghai Composite rose 1.1% to 3,606.50.
“The breakthrough in infrastructure spending talks overnight has lifted sentiments, with spending plans historically being a positive for the markets," said Yeap Jun Rong, market strategist at IG in Singapore. "Sectors leaning towards economic recovery and reopening may see strength."
A recovery in the U.S. economy is a boon for this export-driven region. Although the vaccine rollout in Asia has lagged most parts of U.S. and Europe, the perk from an overseas recovery is likely to come long before herd immunity against the coronavirus pandemic.
Shares in Japanese electronics company Panasonic Corp. shot up more than 4% after it confirmed that it had sold off all the Tesla Inc. shares it owned, worth about 400 billion yen ($3.6 billion). Panasonic said the partnership with the U.S. electric vehicle company will continue, but it wanted cash for future investments, without disclosing details.
On Wall Street, the S&P 500 marked another record high, beating the peak it set early last week. Stocks added to their gains in the afternoon after Biden announced the infrastructure deal, which is sure to benefit companies in the construction industry.
Caterpillar rose 2.6% and Vulcan Materials gained 3.3% on the news.
The plan, costing $973 billion over five years, is the culmination of months of talks, and a larger spending plan from Biden is...