Dollar Gains, Stock Prices Edge Lower
TOKYO (AP) _ The key index on the Tokyo Stock Exchange erased its early gains and closed marginally lower Thursday, while the dollar edged up against the Japanese yen.
The dollar closed at 154.60 yen, up 0.62 yen from Wednesday’s 153.98-yen finish. It opened at 154.28 yen and ranged between 154.25 yen and 154.63 yen.
The 225-share Nikkei Stock Average fell 0.49 of a point, or 0.0015 percent, ending the day at 32,087.27. The index ended the early session with a 38.89- point gain before falling back in the afternoon.
″Although the index rose earlier when investment trust companies were buying, it gradually fell as trading lost direction,″ said Tomoyuki Morimoto, a trader with New Japan Securities Co.
The weaker yen and a decline in government bond prices also discouraged participants, he said.
The benchmark No. 119 10-year Japanese government bond fell to 87.28 points from Wednesday’s close of 87.42, boosting the yield to 7.125 percent from 7.095 percent.
In currency dealing, the dollar continued to rise after showing strength in overseas markets overnight, dealers said.
They said some participants bought the dollar because of political uncertainties in the Soviet Union, while others sold the currency for technical adjustments.
Hard-line Communists have made it clear they will try to replace President Mikhail S. Gorbachev as leader of the Soviet Communist Party at a party congress set for early July.