Stocks Rise, Dollar Falls
TOKYO (AP) _ Tokyo share prices advanced moderately today on growing expectations of a Japanese business recovery, while the dollar fell further against the Japanese yen.
The 225-issue Nikkei Stock Average rose 311.01 points, or 1.69 percent, closing at 18,754.11 points. It had gained 368.83 points, or 2.04 percent, on Monday.
The Tokyo Stock Price Index of all issues listed on the first section, which rose 21.92 points, or 1.63 percent, on Monday, added another 22.57 points, or 1.65 percent, to 1,393.31 points.
An estimated 320 million shares changed hands, up from Monday’s 216 million. Advancing issues outnumbered declines 833 to 172, with 118 issues unchanged.
Stock dealers said strong buying interest spread particularly to high- technology issues, shipbuilding and large-capital issues.
Hirotsugu Ishii, an analyst with Yamatane Securities, said investors now anticipate the earnings of many companies to turn upward.
Economists have said the nation’s slowing economy will turn around in the middle of this year after many manufacturers pare their excessive inventories.
Reports for the fiscal year ended March 31, coming out over the next few weeks, are expected to show poor earnings, however.
Meanwhile, the dollar closed at 129.00, unchanged from its opening but down 0.68 yen from Monday’s close. It was above its overnight New York finish of 128.75 yen.
The dollar now has fallen 1.60 yen in two days.
It ranged Tuesday between 128.95 yen and 129.25 yen. Spot trading totaled $5.71 billion, up from Monday’s $3.62 billion.
Dealers said the dollar bounced back slightly on short-covering in the morning, but headed lower in the afternoon on speculation that U.S. interest rates might be lowered.
″It’s too risky to buy dollars at this time when there is a 50-50 chance of an easing in U.S. credit,″ said Noriko Ohashi, a dealer with Fuji Bank.
The U.S. Federal Reserve Board’s Open Market Committee, which sets monetary policy, was to meet later Tuesday.
Lower interest rates make a nation’s currency less attractive to investors.
The benchmark No. 129 10-year Japanese government bonds finished at 105.08, up from Monday’s 104.91-point finish. Their yield fell to 5.470 percent from 5.500 percent.