Stocks Gain Back, Dollar Moves Higher
TOKYO (AP) _ Share prices finished slightly higher Thursday on the Tokyo Stock Exchange, while the dollar moved higher against the Japanese yen.
The 225-issue Nikkei Stock Average, which surged 508.43 points on Wednesday, gained 11.75 points, or 0.07 percent, closing at 17,959.76. The average was down some 135 points early in the session.
The Tokyo Stock Price Index of all issues listed on the first section rose 15.38 points, or 1.16 percent, to 1,337.38. On Wednesday, TOPIX rose 33.19 points, or 2.57 percent.
An estimated 380 million shares changed hands, up from Wednesday’s 374 million shares.
The dollar closed at 133.45 yen, up 0.20 yen from Wednesday’s close and also above its overnight New York finish at 133.38 yen. After opening at 133.37 yen, it ranged between 133.33 yen and 133.65 yen.
The benchmark No. 129 10-year Japanese government bonds fell to 105.06 points from Wednesday’s 105.18-point finish. Their yield rose to 5.480 percent from 5.460 percent.
The Nikkei average was initially lower on arbitrage selling and profit- taking after a two-day rise, but buying by investment trusts, foreign investors and dealers combined to reverse the course, traders said.
″There is going to be some going back and forth, of course, but it’s regaining the 18,000-point level,″ said Toshiyuki Nishiguchi, a stock dealer at Daiwa Securities.
The continued rally on the New York stock market was having a positive effect on market sentiment, Nishiguchi said. The Dow Jones industrial average rose 47.63 points overnight to a second straight record close of 3,353.76 on unexpectedly strong earnings reports.
Hironobu Ishii, a trader with Yamatane Securities, said the market as a whole is still looking for an appropriate level.
Meanwhile, the dollar moved slightly up though there were no major specific factors affecting it, said Yutaka Miyajima, an exchange dealer with Mitsui Trust and Banking.
The dollar’s firmness followed its overnight gains against other European currencies in New York, where buying was boosted by the uncertain Swiss economy and speculation that Germany’s high interest rate policy would not last long, other traders said.