Stocks Mixed, Dollar Up
TOKYO (AP) _ Blue-chip stocks rose again in Tokyo today, but the broader market continued to lag as investors awaited several key economic reports due out this week. The dollar gained against the yen.
The Nikkei Stock Average climbed 77.46 points, or 0.37 percent, closing at 21,293.57. On Friday, it had gained 72.77 points, or 0.34 percent.
The rally on Wall Street was helping to lift sentiment in Tokyo, traders said. The Dow Jones industrial average set its 11th high in 13 sessions Friday, rising 53.29 to 6,471.76.
As in the New York market, the biggest gainers in Tokyo have been blue chip stocks deemed to have solid profit potential. Stocks such as NEC, Fujitsu and Mitsubishi Heavy Industries did well, as did other industry leaders like Toyota and Honda.
Meanwhile, the broader market was stagnant as traders looked for better indications of the strength of Japan’s recovery from several key economic reports later this week.
Most closely watched will likely be the Bank of Japan’s quarterly survey of business sentiment, due out Wednesday.
``Participants are focusing on individual stocks with good earnings outlook rather than the overall market,″ said Keiji Oka, a dealer at Okasan Securities.
The Tokyo Stock Price Index of all issues listed on the first section was up 4.91 points, or 0.31 percent, to 1,578.47. It had climbed 2.95 points, or 0.19 percent, Friday.
Despite the rise in the two main market indices, retreating issues outnumbered advances 519 to 507, while 224 issues were unchanged.
Volume on the first section of the exchange was estimated at 300 million shares, up from 280.22 million Friday.
In currency trading, the dollar gained against the Japanese yen and German mark as the market interpreted weekend news of the Italian lira’s re-entry into the European currency grid as unfavorable for the mark.
The dollar was trading at 112.12 yen in late afternoon, up 0.88 yen from late Friday. It was quoted at 111.46 yen in New York Friday.
Trades ranged between 111.40 yen and 112.24 yen.
Dealers sold marks against lira, yen and other currencies after European economic officials announced that the lira would rejoin the European exchange rate mechanism at a rate of 990.00 lira to the mark.
Since the mark had been trading above that level, the market bid the currency lower. The mark was quoted at 992.75 lira in afternoon trading, down from 995.75 lira in early Tokyo dealings and even further below 999.75 lira late Friday in New York.
Italy had been forced to leave the exchange rate mechanism four years ago when it couldn’t control downward pressure on the lira.
The benchmark No. 182 10-year Japanese government bond closed at 102.64 yen, down from Friday’s finish of 102.67 yen. Its yield rose to 2.630 percent from 2.625 percent.