Tokyo shares open higher after US infrastructure deal

TOKYO: Tokyo shares opened higher on Friday as investors cheered news that Washington had reached an agreement over massive infrastructure spending plans.

The benchmark Nikkei 225 index rose 0.97 percent or 279.36 points to 29,154.59 while the broader Topix index added 0.90 percent, or 17.52 points, to 1,964.62.

Global shares soared overnight as US President Joe Biden announced that he and a bipartisan group of lawmakers reached an agreement on huge plans to upgrade America's roads, bridges and broadband, among other items.

The news lifted New York shares, with the S&P 500 and Nasdaq marking new record finishes.

"Tokyo shares are seen being buoyant today as investors welcomed the broad deal on the US infrastructure plan," Okasan Online Securities said in a note.

Recovery of business sentiment in Germany and France was also providing support for Tokyo shares, the brokerage said.

Tokyo investors are turning their focus to Japan's business sentiment, which will be released next week in the form of the Bank of Japan's "Tankan" survey.

"After the third state of emergency, business sentiment is expected to vary among manufacturers and non-manufacturers," Okasan said.

"Still, international progress in vaccination efforts should help brighten their outlook," it added.

The dollar stood at 110.95 yen, firming from 110.84 yen in New York overnight.

Among major shares, Panasonic surged 3.61 percent to 1,292.5 yen after a media report said the company sold all its shareholdings in key battery customer Tesla, freeing up billions of dollars for new investments.

The company declined to comment.

Sony rose 0.51 percent to 10,740. Advantest, which produces testing kits for emiconductors, rose 2.00 percent to 10,200 yen. Industrial robot maker Fanuc added 1.61 percent to 26,865 yen.

SoftBank Group erased early gains and was barely changed at 7,863 yen. Nintendo also gave up early gains and slipped into negative territory, falling 0.28 percent to 64,230 yen.