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Tokyo Stock Prices Rise

October 5, 1999

TOKYO (AP) _ The dollar was higher against the yen early Tuesday amid renewed worries over the Japanese economy. Tokyo stock prices rose.

The dollar bought 106.42 yen, up 0.31 yen from its level of 106.11 yen late Monday in Tokyo and also above its level of 106.30 yen late Monday in New York.

The benchmark Nikkei-225 Stock Average rose 156.57 points, or 0.88 percent, to 17,920.28 in the first 30 minutes of trading. The average closed up 51.15 points, or 0.29 percent, the previous day.

In currency trading, the dollar gained against the yen after traders digested a central bank survey on business confidence released the day before.

While the Bank of Japan’s closely watched ``tankan″ survey showed a steep rise in business confidence, it also indicated a drop in business investment plans for the current fiscal year.

The dollar began rising overseas as investors saw the decline in capital spending as a sign that Japan’s economic growth may be slowing.

The economy has been struggling to emerge from its deepest downturn in a half century. But recent bright signs, including two straight quarters of economic growth, have caused the yen to surge in recent months.

In other currencies, the euro bought 113.76 yen in morning trading, down 0.06 yen from its level of 113.82 yen late Monday.

On the stock market, share prices moved higher following a rally in U.S. stocks. On Wall Street, the Dow Jones industrial average advanced 128.23 points, or 1.25 percent, to close Monday’s session at 10,401.23.

Share prices were also boosted on the formation Monday of a new three-party ruling political coalition consisting of the Liberal Democratic, Liberal and New Komeito parties.

``The successful creation of the coalition underscores the leadership of Prime Minister (Keizo) Obuchi,″ said Hideyuki Nakai, a senior investment manager at Nippon Global Securities.

``It also lowers the risk of short-term political instability and increases the likelihood of new economic stimulus measures,″ he said.

The broader Tokyo Stock Price Index of all issues listed on the first section rose 9.11 points, or 0.60 percent, to 1,525.09. The TOPIX closed up 0.90 points, or 0.06 percent, on Monday.

The yield on the benchmark 10-year Japanese government bond rose to 1.6100 percent from Monday’s finish of 1.6050 percent. Its price fell 0.05 point to 100.78.

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