Dollar Up, Stocks Rebound
TOKYO (AP) _ The dollar gained against the Japanese yen for the ninth consecutive trading day today, while Tokyo share prices rebounded slightly.
The dollar closed at 141.35 yen, up 0.18 yen from Monday’s close of 141.17 yen but below its overnight finish in New York of 141.55 yen. The dollar now has gained a total of 3.75 yen in nine days of Tokyo trading.
After opening at 141.60 yen, it ranged between 141.10 yen and 141.71 yen. Spot trading totaled $8.94 billion, down from Monday’s $10.05 billion.
Currency dealers said the dollar started higher after its overnight rise in New York on expectations that the U.S. economy has begun to climb out of recession.
Naozumi Tsutsumi, a dealer with Daiwa Bank, said the dollar retreated slightly from its opening level on profit-taking after a 1.78-yen gain in Tokyo on Monday.
″But the market’s sentiment favoring the dollar still remains firm,″ Tsutsumi said.
The Nikkei Stock Average of 225 selected issues gained 64.21 points, or 0.26 percent, closing at 24,662.59. On Monday, the average fell 436.73 points, or 1.74 percent.
Volume on the market’s first section was estimated at 220 million shares, up from Monday’s 200 million.
Declining issues outnumbered advances 460 to 442, with 201 unchanged.
Kazuo Hamasaki, an analyst with Sanyo Securities, said buying by investment trust funds helped support the Nikkei index in otherwise slow trading.
Hamasaki said, however, that many investors were awaiting the quotation of June futures contracts on Friday.
The Bank of Japan’s quarterly business sentiment survey, released shortly before the markets closed, had almost no effect on the exchange and stock markets, Tsutusmi and Hamasaki said.
In its report on a survey that covered 7,456 companies nationwide in May, the central bank said Japan’s economy was slowing gradually, but corporations planned to spend more money on capital investment.
In bond dealings, the price of the benchmark No. 129 10-year Japanese government bonds slipped to 97.70 points from Monday’s 97.78-point finish. Their yield rose to 6.820 percent from 6.805 percent.