Stock Prices Bounce Back, Dollar Edges Higher
TOKYO (AP) _ Share prices on the Tokyo Stock Exchange bounced back broadly in morning trading Tuesday, supported by firmer prices on Wall Street overnight. The dollar edged higher against the yen.
The 225-issue Nikkei Stock Average recouped 240.79 points, or 1.03 percent, closing the morning session at 23,640.91. Early in the afternoon session, the index was up about 120 points.
On Monday, the average dropped 699.06 points, or 2.90 percent, following the fifth-largest ever plunge in the Dow Jones industrial average Friday.
The Tokyo Stock Price Index of all issues listed on the first section stood at 1,790.36 points, up 19.71 points, or 1.11 percent, from Monday’s finish.
At late morning, the dollar was changing hands at 129.53 yen, up 0.60 yen from Monday’s close. It opened at 129.44 yen after finishing overnight at 129.48 yen in New York.
By late morning, the benchmark No. 129 10-year Japanese government bonds fell to 103.04 points from Monday’s 103.13-point finish. Their yield rose to 5.855 percent from 5.840 percent.
Stock traders said buying in broad sectors of the market pushed share prices higher, helped by an overnight 29.52-point gain in the Dow Jones industrial average.
″A mood of investor confidence is returning to the market with the rebound on Wall Street,″ said Masunori Ishitobi with Sanyo Securities.
Ishitobi said firming futures prices led to buying, particularly by investment trusts.
Osamu Kobayashi, an analyst with New Japan Securities, predicted the recovery in stocks would be rather slow as many investors remained cautious.
In currency trading, the dollar met some profit-taking in early morning but edged up later due to short-covering, said Yasushi Uehara, a dealer with Mitsui Trust and Banking.
″The dollar now seems to be taking a pause at the current level, but sentiment favoring it remains weak, considering the sagging U.S. economy,″ Uehara said.
Traders are watching for the monthly U.S. Commerce Department report on the nation’s trade balance, due out later in the day, he said.