Asian markets were higher Friday, tracking gains on Wall Street overnight that lifted the Nasdaq and the S&P 500 indexes to record highs after US President Joe Biden embraced a bipartisan Senate infrastructure deal.
Investors have been looking to an infrastructure agreement to extend the recovery in the worlds largest economy after massive fiscal stimulus helped the US economy grow at a 6.4 per cent annualised rate in the first quarter.
In morning trade, MSCIs broadest index of Asia-Pacific shares outside Japan climbed 0.6 per cent.
Securing bipartisan agreement on the deal required Biden to sacrifice some of his original ambitions on schools, climate change mitigation, and support for parents and caregivers, as well as tax increases on the rich and corporations.
Chinese blue-chips rose 0.4 per cent, Hong Kongs Hang Seng added 0.6 per cent, Seouls Kospi was up 0.8 per cent and Japans Nikkei rose 0.6 per cent.
Asian stocks rebounded after falling earlier in the week amid concerns of earlier-than-expected policy tightening by the US Federal Reserve, after it signalled higher rates in 2023 last week.
The reality remains that the timing of any tapering scare, or indeed tapering, is most likely to be driven by market-driven inflation expectations. And the pressure on this front has eased of late, Christopher Wood, global head of equity strategy at Jefferies, said in a note.
Reuters

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