Stocks Regain Ground in Tokyo, Dollar Higher
TOKYO (AP) _ The Tokyo Stock Exchange’s main index rose moderately in morning trading Thursday, while the dollar moved higher against the Japanese yen.
The 225-issue Nikkei Stock Average, which surged 508.43 points on Wednesday, added 54.40 points, or 0.30 percent, closing the morning session at 18,002.41. The average was down some 135 points early in the session.
The Tokyo Stock Price Index of all issues listed on the first section gained 15.11 points, or 1.14 percent, to 1,337.10. On Wednesday, TOPIX rose 33.19 points, or 2.57 percent.
At late morning, the dollar was changing hands at 133.48 yen, up 0.23 yen from Wednesday’s close. It opened at 133.37 yen after finishing overnight in New York at 133.38 yen.
The benchmark No. 129 10-year Japanese government bonds fell to 105.09 points by late morning from Wednesday’s 105.18-point finish. Their yield rose to 5.475 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.
Meanwhile, the dollar edged up though there were no major news 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.