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REPEATING FOR ALL NEEDING Stocks Move Lower, Dollar Gains Back Slightly from Opening

July 8, 1992

TOKYO (AP) _ Share prices on the Tokyo Stock Exchange fell moderately Wednesday morning, while the dollar gained back slightly against the Japanese yen from its opening level.

The 225-issue Nikkei Stock Average fell 82.99 points, or 0.50 percent, closing the morning session at 16,376.56. The average shed 197.52 points, or 1.19 percent, on Tuesday.

The Tokyo Stock Price Index of all issues listed on the first section fell 6.12 points, or 0.48 percent, to 1,265.03. The index was down 16.39 points, or 1.27 percent, the previous day.

At late morning, the dollar was changing hands at 124.00 yen, down 0.17 yen from Tuesday’s close but higher than its opening at 123.88 yen. In New York, the dollar finished overnight at 124.10 yen.

The benchmark No. 129 10-year Japanese government bonds edged higher at 106.72 points by late morning from Tuesday’s 106.63-point finish. Their yield fell to 5.175 percent from 5.190 percent.

Stock traders said share prices continued to fall on a spate of negative news, including an overnight fall on Wall Street, the financial troubles of a construction firm and speculation related to capital gain taxes.

″Bad factors combined to push prices down amid a wait-and-see mood among investors watching the G-7 summit,″ said Hirotsugu Ishii, an analyst with Yamatane Securities.

Royal Construction Co., a Tokyo construction firm whose stocks are traded over-the-counter, said Tuesday it will apply to a Tokyo court for protection against its creditors after failing to honor a bill.

A Royal official said the company’s outstanding debts totaled about 19 billion yen ($153 million), blamed mainly to delays in getting paid for construction.

Also hurting stocks were news reports saying Japan’s monetary authorities are considering a review of the capital gains tax charged on large-lot transactions.

The dollar continued its gradual slide against the Japanese yen, but some traders bought it back on short covering.

A Fuji Bank dealer said the dollar’s direction was unclear as market participants were waiting for an outcome of the Munich summit of the Group of Seven major industrialized nations.

The dollar’s decline was accelerated early in the session by comments by U.S. Treasury Secretary Nicholas Brady late Tuesday on U.S. television. Brady said he was not bothered by the dollar’s decline against the German mark and that the U.S. Federal Reserve has room to maneuver interest rates even lower.

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