Share Prices Rise, Dollar Falls
TOKYO (AP) _ Share prices on the Tokyo Stock Exchange rose Thursday, as the dollar fell against the Japanese yen.
The 225-issue Nikkei Stock Average gained 169.20 points, or 0.98 percent, closing at 17,437.91 points. On Wednesday, the average fell 212.03 points, or 1.21 percent.
The Tokyo Stock Price Index of all issues listed on the first section was up 8.52 points, or 0.65 percent, to close at 1,325.85 points. The TOPIX posted a 8.57-point fall, or 0.65 percent, the day before.
Mitsuru Kanno, an analyst with Wako Securities, said prices started moderately lower following an overnight 29.18-point fall on Wall Street, but arbitrage buying reversed the course.
In arbitrage trading, investors seek profits from price differentials between the spot and futures markets.
Kanno said continued buying by public pension funds supported the mid- morning advance, as incentive-backed issues with prospective good earnings drew investors’ attention.
Increased investment by public funds is part of government economic measures announced in late August to rescue the weakening stock market.
On the foreign exchange market, the dollar closed at 123.12 yen, down 0.75 yen from Wednesday’s close. After opening at 123.18 yen, it ranged during the day from 123.07 yen to 123.30 yen.
Currency dealers said the yen carried over its overnight firmness against the dollar in overseas markets, but buying on a moderate scale by Japanese importers nudged the dollar higher from its opening level.
Shinichiro Ohashi, a dealer with Tokai Bank, said trading in Tokyo would be limited as players remain watchful of developments in the European monetary system.
The yield on the benchmark No. 145 10-year Japanese government bonds was unchanged from Wednesday’s 4.615-percent finish. Their price stood at 105.71.