Dollar Up, Stocks Rebound
TOKYO (AP) _ The dollar inched up against the yen in morning trading Wednesday and share prices on the Tokyo Stock Exchange rebounded.
After opening at 137.68 yen, the dollar was changing hands at 137.72 yen by late morning, down 0.63 yen from Tuesday’s close but above the overnight New York finish of 137.48 yen.
The Nikkei Stock Average of 225 selected issues gained 208.01 points, or 0.82 percent, closing the morning session at 25,598.68. On Tuesday, the index shed 35.21 points, or 0.14 percent.
In bond dealings, the price of benchmark No. 129 10-year Japanese government bonds edged higher at 98.64 points by late morning from Tuesday’s 98.58-point finish. Their yield fell to 6.645 percent from 6.655 percent.
Shigeki Wakabayashi, a dealer with Deutsche Bank in Tokyo, said despite the dollar’s slight recovery from its opening, the ″currency’s top is heavy.″
Wakabayashi said the dollar would come under selling pressure as U.S. economic data due out this week, including second-quarter U.S. gross national product figures, may be worse than expected.
The dollar’s lower opening followed its overnight decline in New York, where it fell on expectations of further indications of a weakening American economy.
On the stock exchange, share prices were higher almost across the board in a favorable reaction to an overnight advance on Wall Street, coupled with firming bond prices and declining short-term interest rates, said Masahiko Nozaki, an analyst with Wako Securities.