Stocks, Dollar Advance Slightly
TOKYO (AP) _ Tokyo share prices gained slightly today as trading picked up on the second day of business restrictions against Japan’s four largest brokerages. The dollar rose against the Japanese yen.
The 225-issue Nikkei Stock Average climbed 27.02 points, or 0.11 percent, closing at 24,334.67. On Tuesday, the average rose 446.98 points, or 1.87 percent, in thin trading.
The Tokyo Stock Price Index of all issues listed on the first section closed at 1,850.05 points, up 1.49 points, or 0.08 percent. The TOPIX gained 12.97 points the previous day.
Volume on the first section was estimated at 350 million shares, up from Tuesday’s 263 million. Despite the rise in the indexes, declining issues outnumbered advances 473 to 452, with 189 unchanged.
″We had some concern about the absence of the four brokerages in the market yesterday, but the market showed confidence to overcome it,″ said Takeshi Shimazaki, a trader with Dai-Ichi Securities.
Shimazaki said gainers included shares related to biotechnology and the chemical industry, and some food, pharmaceutical and textile issues.
Under a Finance Ministry order that took effect Tuesday, Nomura, Nikko, Daiwa and Yamaichi Securities were suspending operations in their corporate divisions for one to three weeks for compensating favored clients for investment losses.
Nomura, the world’s biggest brokerage, also was ordered to halt stock trading at more than half of its 153 domestic branches for periods ranging from four to six weeks for excessively promoting shares of Tokyu Corp., a railroad-based conglomerate, in October 1989.
Meanwhile, the dollar closed at 130.02 yen, up 0.30 yen from Tuesday’s close but below its overnight finish of 130.10 yen in New York.
After opening at 129.90 yen, it ranged between 129.77 yen and 130.05 yen. Spot trading totaled $4.04 billion, down from Tuesday’s $8.17 billion.
Nobuyoshi Okada, a dealer with the Long-Term Credit Bank of Japan, said traders were adjusting their dollar positions before Thursday’s scheduled release of U.S. economic data, including the consumer price index for September and trade deficit for August.
Okada said there was speculation in the market that depending on the latest figures, the U.S. Federal Reserve Board might ease credit Thursday to encourage the nation’s economic recovery.
The benchmark No. 129 10-year Japanese government bonds closed at 102.80 points, up from Tuesday’s 102.57-point finish. Their yield fell to 5.900 percent from 5.940 percent.