Stocks, Dollar Decline
TOKYO (AP) _ Prices on the Tokyo Stock Exchange finished lower Monday, while the dollar also fell against the Japanese yen.
The 225-issue Nikkei Stock Average fell 115.12 points, or 0.62 percent, closing at 18,440.18 points. On Friday, the average gained 168.81 points, or 0.92 percent.
The broader Tokyo Stock Price Index of all issues listed on the first section was down 9.82 points, or 0.69 percent, to 1,410.56. The TOPIX rose 23.59 points, or 1.69 percent, in the previous trading day.
Volume on the first section was estimated at 380 million shares, down sharply from 754.04 million shares Friday.
Prices on the Tokyo Stock Exchange were higher Monday morning and Hiroshi Nakamura, an analyst with Wako Securities, said buying continued to be boosted by the government’s announcement late last month of a 10.7 trillion yen fiscal package to resuscitate Japan’s economy.
He said a cut in the U.S. federal funds rate helped support prices by renewing hopes among Japanese investors for a discount rate cut. Lower interest rates usually encourage stock investment.
Stock prices fell into negative territory, however, in the final half-hour over concern that the market has gone up too quickly.
On the foreign exchange market, the dollar closed at 123.45 yen, down 0.70 yen from Friday’s close. It opened at 123.18 yen and ranged from 123.10 yen to 123.48 yen.
The dollar remained stable in Tokyo as participants sold German marks for dollars to take profits following the mark’s sharp rise Friday, dealers said.
On overseas markets Friday, the dollar fell sharply, especially against the mark, on worse-than-expected U.S. jobless figures for August. The figures prompted the Federal Reserve Board to cut the federal funds rate by 0.25 percentage points to 3 percent.
The U.S. unemployment rate fell slightly to 7.6 percent in August, but non- farm payrolls shrank by 83,000, fueling worries over the U.S. economy.
Hiromi Masaki, a dealer with Chemical Bank, said trading in Tokyo was inactive as players were reluctant to make significant moves ahead of the U.S. Labor Day holiday Monday.
The benchmark No. 145 10-year Japanese government bonds were higher at 104.70 points from Friday’s 103.85-point finish. Their yield stood at 4.780 percent, down from 4.905 percent.