Global Stocks Mostly Rise on US Rally 06/25 05:25
Global shares mostly rose Friday, buoyed by a rally on Wall Street that came
after U.S. President Joe Biden announced a bipartisan deal on infrastructure
TOKYO (AP) -- Global shares mostly rose Friday, buoyed by a rally on Wall
Street that came after U.S. President Joe Biden announced a bipartisan deal on
France's CAC 40 shed 0.2% to 6,620.26 in early trading, while Germany's DAX
slipped 0.2% to 15,562.46. Britain's FTSE 100 edged up 0.2% to 7,121.87. U.S.
shares were set to drift higher with Dow futures up 0.2% at 34,159. S&P 500
futures gained nearly 0.1% to 4,258.62.
Japan's benchmark Nikkei 225 jumped 0.7% to finish at 29,066.18. South
Korea's Kospi gained 0.5% to 3,302.84. Australia's S&P/ASX 200 edged up 0.5% to
7,308.00. Hong Kong's Hang Seng surged 1.4% to 29,288.22, while the Shanghai
Composite rose 1.2% to 3,607.56.
"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 the export-driven Asian region.
Although the vaccine rollout in Asia has lagged behind most parts of U.S. and
Europe, the region's economies are likely to benefit from an overseas recovery.
Shares in Japanese electronics company Panasonic Corp. shot up nearly 5%
after it confirmed it had sold off all the Tesla Inc. shares it owned, worth
about 400 billion yen ($3.6 billion). Panasonic said its partnership with the
U.S. electric vehicle company will continue, but it wanted cash for future
investments, without disclosing details.
Shares in nuclear and technology giant Toshiba Corp. sank 0.6% after
shareholders rejected a proposal to reappoint the chairman and one other board
member, while approving the other directors. Activist overseas investors had
demanded Chairman Osamu Nagayama step down to take responsibility after an
investigation said the shareholders' meeting last year was improper and company
officials had colluded with government bureaucrats. He was not directly
implicated in any wrongdoing.
Biden's infrastructure deal is sure to benefit companies in the construction
The plan, costing $973 billion over five years, is the culmination of months
of talks, and a larger spending plan from Biden is still possible later this
Markets have calmed since the Federal Reserve surprised investors last week
by saying it could start raising short-term interest rates by late 2023,
earlier than expected, if recent high inflation persists.
Meanwhile, orders to U.S. factories for big-ticket manufactured goods rose
for the 12th time in the last 13 months in May, pulled up by surging demand for
civilian aircraft. The Commerce Department said Thursday that orders for
durable goods -- meant to last at least three years -- climbed 2.3% in May,
reversing a 0.8% drop in April and coming despite a backlogged supply chain and
a shortage of workers.
In energy trading, benchmark U.S. crude rose 14 cents to $73.44 a barrel.
Brent crude, the international standard, added 22 cents to $75.78 a barrel.
In currency trading, the U.S. dollar fell to 110.73 Japanese yen from 110.87
yen. The euro cost $1.1947, up from $1.1930.