Tokyo Stocks Climb, Dollar Higher
TOKYO (AP) _ Tokyo stocks climbed Tuesday morning on buying of export-related issues following the yen’s decline against the dollar.
The benchmark 225-issue Nikkei Stock Average gained 171.62 points, or 1.49 percent, to 11,670.00 at the end of morning trading. On Monday, the average closed down 149.63 points, or 1.2 percent.
The dollar bought 131.12 in late morning trading, up 0.68 yen from late Monday in Tokyo but below its late New York level of 131.33 yen.
On the stock market, export-oriented issues such as autos and technology stocks, including Honda Motor and Kyocera, led the morning rally.
A lower yen makes Japanese exports relatively less expensive and thus more competitive aboard, boosting earnings of Japanese export companies. Japan is still struggling to pull out of its decade-long economic slump.
In New York, the Dow Jones industrial average fell 29.48 to 10,577.75 at Monday’s close. The Nasdaq composite index closed at 1,877.06, up 8.76.
The broader Tokyo Stock Price Index of all issues listed on the first section was up 12.30 points, or 1.13 percent, to 1,100.44 Tuesday morning. The TOPIX closed down 9.10 points, or 0.83 percent, the day before.
In currency dealings, the dollar carried over much of its overnight strength in New York after the yen dropped on a number of factors, including a high-profile resignation from Japan’s ruling coalition.
Koichi Kato, a close ally of Prime Minister Junichiro Koizumi and long considered one of the ruling party’s best hopes for reform, quit the Liberal Democratic Party Monday in the midst of Japan’s latest political scandal.
In other currencies, the euro was traded at 115.66 yen, up from 114.68 yen late Monday in Tokyo.
The yield on the benchmark 10-year Japanese government bond fell to to 1.4400 percent from Monday’s finish of 1.4450 percent. Its price rose 0.05 point to 100.52.
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Tokyo Stock Exchange: http://www.tse.or.jp