Tokyo Stocks Rise
TOKYO (AP) _ Tokyo stocks jumped early Thursday after a dramatic rally on Wall Street sparked by an unexpected U.S. interest rate cut. The dollar was lower against the yen.
The benchmark 225-issue Nikkei Stock Average gained 147.68 points, or 1.08 percent, to 13,789.47 at the start of the morning session. On Wednesday, the average closed up 574.70 points, or 4.4 percent.
The dollar bought 122.24 yen in early trading, down 0.64 yen from late Wednesday in Tokyo and also below its late New York level of 122.36 yen.
On the stock market, the Nikkei index continued to rise following sharp gains in U.S. stocks after the Federal Reserve Board announced Wednesday that it was lowering interest rates by 0.5 percentage point.
The Fed’s action, the fourth cut this year, boosted investor hopes that the U.S. economy and earnings will rebound by the end of 2001.
In New York, the Dow Jones industrial average soared 399.10 points, or 3.9 percent, to 10,615.83 at Wednesday’s close. The Nasdaq composite rose 156.22, or 8.1 percent, to 2,079.44, reaching the 2,000 level for the first time since March 15 and posting its fourth-best daily percentage gain.
The broader Tokyo Stock Price Index of all issues listed on the first section was up 13.35 points, or 1.01 percent, to 1,333.76. The TOPIX closed up 34.88 points, or 2.7 percent, the day before.
In currency dealings, the dollar slipped against the yen in line with its bearish tend in New York on Wednesday following the Fed’s rate-cut move.
Lower interest rates tend to make a nation’s currency less attractive to investors.
In other currencies, the euro was traded at 108.35 yen, down from 108.48 yen late Wednesday in Tokyo.
The yield on the benchmark 10-year Japanese government bond fell to 1.4900 percent from Wednesday’s finish of 1.5000 percent. Its price rose 0.09 point to 96.63.
On the Net:
Tokyo Stock Exchange: http://www.tse.or.jp