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Tokyo Stocks Rise in Early Trading

May 16, 2000

TOKYO (AP) _ Tokyo stocks rose moderately Tuesday morning, supported by overnight gains on Wall Street. The U.S. dollar was higher against the yen.

The benchmark 225-issue Nikkei Stock Average gained 112.28 points, or 0.65 percent, to 17,426.07 at the end of morning trading. On Monday, the average closed down 44.17 points, or 0.25 percent.

The dollar bought 109.28 yen at late morning, up 0.38 yen from late Monday in Tokyo but below its late New York level of 109.53 yen overnight.

On the stock market, the Nikkei index started higher as high technology issues rose following gains in New York, where the Dow Jones industrial average advanced 198.41 points to 10,807.78 at Monday’s close. The Nasdaq composite index gained 78.59 points to finish at 3,607.65.

But many investors in Tokyo were holding back ahead of a meeting of U.S. Federal Reserve Board officials on interest rates later Tuesday, traders said.

Analysts believe Fed policy-makers will raise interest rates a half percentage point in their ongoing effort to slow the U.S. economy and contain inflationary pressure.

The broader Tokyo Stock Price Index of all issues listed on the first section was up 5.81 points, or 0.36 percent, to 1,633.16. The TOPIX closed down 3.14 points, or 0.19 percent, the day before.

In currency dealings, the dollar largely maintained its strength on optimism for the U.S. economy that spilled over from New York stock markets.

Currency dealers said, however, that trades remained in a narrow range ahead of the Fed meeting.

In other currencies, the euro was quoted at 99.18 yen, down from 99.84 yen late Monday in Tokyo.

The yield on the benchmark 10-year Japanese government bond rose to 1.7350 percent from Monday’s finish of 1.7050 percent. Its price fell 0.26 point to 100.55.

(km-dj)

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