Tokyo ends up in the green, driven by the US infrastructure agreement

The Nikkei gained 0.66% to 29,066.18 points. However, it only shows a weekly increase of 0.35%. The broad Topix index ended Friday with an increase of 0.8% to 1,962.65 points.

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The Tokyo Stock Exchange ended the week on a high, supported by the preliminary agreement reached Thursday in the US Senate on a massive investment plan in infrastructure in the United States which had also carried Wall Street.

The flagship Nikkei index rose 0.66% to 29,066.18 points on Friday. However, it only posted a weekly increase of 0.35%, the start of the week having been marked two sessions of roller coaster against the backdrop of renewed concerns about the timing of the next tightening of US monetary policy.

The broad Topix index ended Friday with an increase of 0.8% to 1,962.65 points.

Elected Democrats and Republicans have reached an initial agreement on the plan of more than 1.2 trillion dollars wanted by President Joe Biden to modernize infrastructure in transport, water and broadband internet.

Although negotiations on this plan are far from over, the news of an agreement “has helped improve the mood of the Tokyo market as well,” said Toshikazu Horiuchi, broker at IwaiCosmo Securities interviewed by AFP.

The acceleration of the Covid-19 vaccination campaign in Japan, which this week passed the target of one million doses administered per day, was another positive factor, added Mr. Horiuchi.

In China, the Hang Seng index of the Hong Kong Stock Exchange was also up sharply (+ 1.34% around 07:25 GMT). The Shanghai and Shenzhen composite indices also gained more than 1% each during the session.

On the side of values

SHAREHOLDERS ARE CLEANING AT TOSHIBA: Toshiba shareholders (-0.61% to 4,815 yen) voted Friday against the re-election of the group’s chairman of the board, Osamu Nagayama, and another director also took the door.

This sanction vote, an extremely rare event in Japan, comes after the shattering revelations of an independent investigation into the murky circumstances of the previous ordinary general meeting of Toshiba in July 2020. The Japanese industrial and technological group had at the time attempted to influence the votes, with the help of officials from the Ministry of Economy, Trade and Industry (Meti).

PANASONIC SOLD ITS SHARES IN TESLA: Panasonic jumped 4.92% to 1,309 yen. The group confirmed on Friday that it sold all of its Tesla shares for around 400 billion yen (3 billion euros) during its 2020/21 fiscal year ended March 31.

This operation “does not affect the partnership” between the two companies, told AFP a spokesperson for Panasonic, which is a major supplier of electric batteries for Tesla. The Japanese group wants to allocate the proceeds of this sale in investments for its future growth.

On the currency and oil side

The yen appreciated against the dollar, at a rate of one dollar against 110.76 yen around 07:45 GMT against 110.87 yen Thursday at 21:00 GMT.

The European currency was stable against the yen, with one euro trading for 132.27 yen against 132.29 yen the day before.

The euro rose against the dollar, with a euro worth $ 1.1941 against $ 1.1932 on Thursday.

The oil market continued to grow: around 07:35 GMT the price of a barrel of American WTI gained 0.22% to 73.46 dollars and that of a barrel of Brent from the North Sea rose by 0.23% to 75.73 dollars .

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